World
Spring 2013
Spring 2013
Bunkering ANDROID APP ON
World Bunkering
The mass flow meter revolution lNG - fuel of the future l Innovation - blowing in the wind
THE ONLY OFFICIAL MAGAZINE OF
l Exploring the Indian sub-continent l UAE report WB Spring 2013 book.indb 1
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Full range of premium quality bunker fuel For every type of engine Full oil compliant with ISO 8217:2010 Client-oriented service and flexible schemes of cooperation ✔ Own bunkering fleet ✔ ✔ ✔ ✔
Tranzit DV Group Co., LTD 13, Uborevicha street, Vladivostok, 690091, Russia Tel: 7 (423) 249-11-99 Fax: 7 (423) 243-28-28
Tranzit DV Trade House Co., LTD 13, Uborevicha street, Vladivostok, 690091, Russia Tel: 7 (423) 249-11-99 Fax: 7 (423) 243-29-94
E-mail: tranzit@tranzitdv.ru, group@tranzitdv.ru
E-mail: group@tranzitdv.ru
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Marine Logistics Co., Ltd Office No. 18B-18F, One Capital Place, No. 18 Luard Road, Wanchai, Hong Kong Tel: (852) 2865-0381, Fax: (852) 2865-0189 E-mail: marine.logistics@gmail.com
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World
Spring 2013
Bunkering Publisher: W H Robinson Editor: David Hughes (editor@mar-media.com) Deputy Editor: Sandra Speares (sandra.speares@mar-media.com) Project Manager: Dawn Barley (dawn.barley@mar-media.com) Project Consultant: Alex Corboude (alex.corboude@mar-media.com) Designer: Justin Ives (www.justindesign.co.uk)
The views expressed in World Bunkering are not necessarily those of iBiA, or the publishers unless expressly stated to be such. iBiA disclaims any responsibility for advertisements contained in this magazine and has no legal responsibility to deal with them. The responsibility for advertisements rests solely with the publisher. World Bunkering is published by Maritime Media Ltd on behalf of iBiA and is supplied to members as part of their annual membership package.
Published by:
Maritime Media Ltd The Diary House rickett Street London SW6 1rU UK Tel: +44 (0) 20 7386 6100 Fax: +44 (0) 20 7381 8890 E-mail: inbox@mar-media.com Website: www.worldbunkering.com On behalf of:
iBiA Ltd Latimer House 5-7 Cumberland place Southampton SO15 2BH UK Tel: +44 (0) 20 3397 3850 Fax: +44 (0) 20 3397 3865 E-mail: ibia@ibia.net Website: www.ibia.net
ANDROID APP ON
THE ONLY OFFICIAL MAGAZINE OF
ISSN 1367-5018
Š The international Bunker industry Association Ltd This publication is printed on pEFC certified paper. pEFC Council is an independent, non-profit, non-governmental organisation which promotes sustainable forest management through independent third party forest certification.
Visit online, with page-Turning technology at
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Raising the game Editor David Hughes looks back on a busy few months, where there has been much debate on upcoming enviromental changes
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ust as i started writing this letter a press release arrived from container shipping giant Maersk Line, saying it has already reached its 2020 target of reducing CO2 emissions by 25% from its benchmark 2007 levels. For good measure, the company’s chief operating officer, Morten Engelstoft, says that to “keep that momentum we’re raising the target to a 40% reduction in CO2 by 2020”. As well as giving itself a tough target, Maersk is also raising the game for all shipowners, many of whom will probably be less than thrilled by another of Engelstoft’s comments.: “Maersk Line is an advocate for global regulation of CO2 for shipping. Cutting CO2 is a benefit for our business, not a threat to it.” Many owners will believe that, by implementing Ship Energy Efficiency Management plans, at the same time as complying with new low sulphur regulations and dealing with the nightmare of fitting water ballast treatment systems within an impossible time-scale, they are doing their bit to save the planet. The reality, though, is that unless the prevailing view of politicians and experts changes dramatically, the pressure on the shipping industry to cut carbon emissions can only increase. in this issue, we report in Environmental news on the implications for shipping of the Doha agreement to extend the Kyoto protocol. The facile view would be that there are no implications, that nothing happened to affect shipping. Actually, a lot of work went on behind the scenes and is almost certainly set to emerge at this year’s Conference of the parties (COp-19) of the Un Framework Convention on Climate Change (UnFCCC). By then, the Sustainable Shipping initiative (SSi), a group that includes several industry big hitters including Maersk, will have reported the conclusions of the working groups it has set up to consider various environmental issues. no doubt SSi’s views will add to the pressure on shipping to further demonstrate its sustainability. partly as a reflection of the ongoing debates on green topics, this issue of World Bunkering includes the first of what will be regular reports under the banner of “innovation”. Bearing in mind the CO2 issue, i draw readers’ attention to our report in the innovation section on the successful trials by Canada Steamship Lines of Ecospec freshwater closed loop CSnOx system. These appear to have focused on the system’s removal of sulphur oxides. However, the company says the system can, as originally announced, remove CO2 from the exhaust stream. To do that you have to spend more on extra fuel, so nobody is interested for now. But as pressure to cut CO2 rises, the industry might find having this technical solution to the problem in the locker very useful. There is much else in this issue, including progress on mass flow meters in Singapore – another area where change is inevitable. Finally, i look forward to meeting many of our readers at the iBiA Dinner. Regards David Hughes
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Contact: Shazmeer Jiwan Alba Petroleum Ltd PO Box 97155 Mombasa, Kenya Tel: + 254 734 539777 + 254 720 630000 Fax: + 254 20 2689549 Mobile: + 254 734 575744 E-mail: sales@albapetroleum.com
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WORLD
SPRING 2013
BUNKERING IBIA Reports Editor’s letter 5 Chairman’s introduction 9 Chief executive’s report 11 New members 12 Noticeboard 13 Membership application 15 9
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Industry news Environment Interview Traders Fuel quantity Testing IT Risk management
Special Features 17 22 26 30 34 39 43 45
Geographical Focus North Europe 47 Indian Sub Continent 51 UAE 55 Russian update
p7 Contents.indd 7
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Innovation Legal news Equipment and services Preview: LNG – Fuelled Shipping Preview: LNG – Fuel Forum Preview: Bunkering in Europe Preview: Fujcon Preview: Sea Asia PREVIEW: International Bunker Conference
72 75 76 77 79 81 83 85 86
Diary
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Chairman’s welcome
‘It has been a pleasure and a privilege’ Nigel Draffi n
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his will be my last message to you as Chairman because our new Chairman, Simon neo, will be taking over on 1 April. it has been a pleasure and a privilege to be your Chairman and follow in the footsteps of so many illustrious predecessors. When i took up the role, we were in transition. We had started the process of recruiting a new Chief Executive, and the fact that Trevor Harrison was willing to carry out the duties as “acting chief executive” – or ACE as we like to call him – allowed us to spend time gathering candidates and conducting a measured short listing and interview process to make sure we got the right person. Cliff Brand has now been in post for a number of months and is pushing us forward towards new achievements. i would like to thank the Board Development Committee for all its hard work on the recruitment process. Cliff will have told you about the planned activities and some of the new initiatives in the pipeline. The membership survey has given us good feedback on the issues that are of specific interest to you all.
Singapore leads the way
Our members in Singapore, aided by Fook Sing from the iBiA Asia office, are leading the way in showing what can be done at a local level and i hope that this success can be matched in other regions, The African branch is also working hard to spread its influence and support north of its current membership in South Africa.
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We have grown into an organisation, which, because it represents all participants in our industry, has gained recognition from international organisations like the international Maritime Organization and the international Organization for Standardization. We are regarded as a stakeholder organisation by the European Commission and we have good links with other ngO’s, such as inTErTAnKO, BiMCO and SigTTO. in order to maximise this interaction, we need to understand what you, the membership, regard as priorities. The board, which has given me strong support throughout my year, is looking at proposals from Cliff for long-term strategy and is considering whether we should have an information and statistical function within the secretariat. none of this will happen overnight, but demonstrates that we have not been sitting on our hands. Special thanks
i have some special thanks to distribute: first to immediate past Chairman Bob Lintott, who will leave the board in April. He has been a great help and support throughout the year. To Charlotte Egan and Chanette roughton, who have worked so hard to keep the wheels turning with a part-time chief executive. Their efforts can be seen in the success of our Convention and the success of the Annual dinner – but they do a lot more than this. To Trevor Harrison for his support as ACE, as well as on the board. To the rest of the board for its hard work and enthusiasm. And, finally, to Cliff Brand, for being up to the challenge of the job. i wish him well in the coming years.
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Bunker Supply Services Oil Product transportation by sea Ship Agency Attendance and Anchorage Services Koz’mino, Nakhodka, Port Vostochny, Vladivostok, Posiet, Zarubino, Slavyanka
Nakhodka-Portbunker Co. Ltd Powered to perform bunkering services within the sea ports of the Russian Far East
HIGH QUALITY BUNKER PRODUCTS ADVANCED BARGES APPROVED BY EXXON MOBIL AND SHELL ATTRACTIVE PRICING EFFICIENT SHIP AGENCY SERVICES Nakhodka-Portbunker Co. Ltd 15, Pavlova Str, Nakhodka, 692926, Russia Tel: +7 (4236) 630641 Fax: +7 (4236) 657806 E-mail: nakhodkaportbunker@nhk.infosys.ru Website: www.nakhodkaportbunker.ru
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Chief executive’s message
‘Setting standards for the marine fuels industry’
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y the time this article is published, i’ll have been in post for just over three months and during that period i’ve been busy getting my feet under the table, so to speak, and making contact with as many of you as i possibly can. One of my first tasks was to initiate a member’s survey, which you should, by now have had an invitation to participate in. The purpose of the survey is to find out how we can improve the Association for the benefit of its members – you. i do hope you will – if you have not already done so – take the time to complete the survey as it is important to both the board and the secretariat that you have your say. it is my belief, and that of the board, that iBiA needs to grow its membership and thereby its international influence, as well as be recognised as a quality trade organisation that sets standards for the marine fuels industry, as a key player. However, in order to do this we realise that the organisation must be able to increase the services and benefits it offers to members, as well as provide strong representation and active lobbying at industry regulatory organisations and forums, such as the international Maritime Organization and the European Commission. This is extremely important, given the changes in legislation that are fast approaching our industry. This is something that i will be working on the next couple of months in a detailed strategy and business plan covering iBiA’s future for the next three years.
Cliff Brand
Board meetings
The board continues to meet regularly and with the next meeting scheduled in February, we are taking the opportunity to do so at our annual dinner. in addition to this, the board continues to hold regular monthly telephone conference calls, which provide the opportunity for meaningful discussion on the future direction of iBiA and its presence internationally. i would also like to take this opportunity of welcoming Mustafa Muhtaroglu (Energy petrol, istanbul) as a new board member and the continuing support of re-elected Dilip Mody (global Fuels & Lubricants, india) and Jens Maul Jorgensen (Oldendorff Carriers, germany). Mustafa Muhtaroglu replaces immediate past chairman Bob Lintott and the new appointments take effect from 1 April 2013. Worldwide events
Thus far, iBiA has been invited to both attend and speak at two events in Amsterdam at the beginning of March: the Annual European Fuels Conference and the Bunkering in Europe Conference. in addition to this, iBiA will also be present at FUJCOn later in March, as well as platt’s Bunker Fuel conference, again in Amsterdam, in May. iBiA will also attend and speak at the Turkish Bunkering Conference in June at istanbul. Later in the year, iBiA will support London Shipping Week by hosting an industry seminar to be held at London’s naval Club, for which invites will sent out nearer the time. Annual dinner
global representation
As part of that strategy, i will be looking at increasing our global representation in the continuing support of iBiA Asia and our Africa branch, as well as encouraging the formation of other branches in areas of the world where there is potential for increasing membership and active participation by branch officers. in addition to this, i’ll be encouraging active participation and contribution from the executive and wider membership in the form of working groups and topical industry forums as well as holding technical and commercial sponsored seminars at strategic locations periodically throughout the year.
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Time is fast approaching that point in the year when iBiA holds its very successful annual dinner in London. As i write this article, more than 800 tickets have been sold and it is hoped that this year we surpass the 1000 mark. it’s a great opportunity for members to meet and network with one another and i’m therefore looking forward to getting to know a few more of you. Annual convention
Finally, our next annual convention – although still some time away – will be held in Hong Kong on 5-7 november: a date to mark in your diary to continue on the success of the last convention held in Dubai.
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New Members CORPORAtE
ENOC BuNkERINg INtERNAtIONAl llC BUnKEr SUppLiEr Shaji Mathew Enoc House - 1, Dubai, 6448, UAE E-mail: bunkersales@enoc.com
SMAP ENERgy NIg ltD BUnKEr SUppLiEr Olaoye Ajiboye 54 Borno Crescent, Apapa, Lagos State, 234-01, nigeria E-mail: info@smapltd.com
A. MAtEOS & SONS ltD
SHAJI MAtHEW
pO S&D gavin Cavaco Unit 2, ground Floor, Candytuft House, Waterport Terraces, gibraltar, gX11 1AA, gibraltar E-mail: management@mateos.gi
BUnKEr SUppLiEr Enoc Bunkering international LLC Enoc House - 1, p.O. Box 6442, Dubai, 6442, UAE E-mail: shaji@enoc.com
CHEMOIl ENERgy BV
BUnKEr SUppLiEr Askar Oil Services pVT Ltd 30-A garden Block, new garden Town, Lahore, 54000, pakistan E-mail: shakeel.nasim@gmail.com
BUnKEr SUppLiEr graham Furse 5th Floor, Montevideo rotterdam, 3072 MD, The netherlands E-mail: graham.Furse@chemoil.com
NORWEgIAN OIl tRADINg AS BUnKEr BrOKEr Benny Clausen Tenvikveien 373 - 375, p.O. Box 95 Borgheim, notteroy, 3163, norway E-mail: bunkers@norwegianoiltrading.no
MAtHIAS AIgBIREMON BUnKEr SUppLiEr Mahis international Ventures 10 Callutta road, Apapa, Lagos, 234, nigeria E-mail: mathias.inter@yahoo.com
CORPORAtE ADDItIONAl
SOCAR tuRkEy PEtROl ENERJI BUnKEr SUppLiEr Zeki Tarakci Cengiz Topel Cad. no. 39 Le Meridien, is Merkezi Kat: 3, Etiler-istanbul, 34337, Turkey E-mail: zeki.tarakci@socarenerji.com
SHAkEEl NASIM
A. MAtEOS & SONS Sl - CEutA pO S&D paseo del revellin nยบ20 1ยบB Ceuta, 51.001 Ceuta, Spain E-mail: management.ceuta@mateos.gi
PEER VAN OOStERHOut SErViCE BMT De Beer b.v. guldenwaard 141, rotterdam, 3078 AJ, The netherlands E-mail: p.v.oosterhout@bmtdebeer.com
INDIVIDuAl
IAN CRutCHlEy
JOSEPH NyARkO
BUnKEr SUppLiEr innospec Ltd Oilsites road, Ellesmere port, Cheshire, CH65 4EY, United Kingdom E-mail: ian.crutchley@innospecinc.com
BUnKEr TrADEr ghana Oil Company Ltd p.O. Box 3183, Accra, 233, ghana E-mail: aduesare_nyarko@yahoo.com
Oil Marketing & Trading International (Europe) SA MARINE FUELS
in UAE in CEUTA - Spain
and now
in JAMAICA Office 2001, Saba Tower 1, JLT DUBAI, UAE Tel: 00971 4 4350500 Fax: 00971 4 4350505 E-mail: bunkers@oil-marketing.com
12 Kithiron Street, Alimos 17455 ATHENS, GREECE Tel : +30 2109609860 Fax : +30 2109609861 E-mail: bunkers@oil-marketing.com E-mail: ceuta@oil-marketing.com E-mail: jamaica@oil-marketing.com
TELEX: (0510) 94078550 OM T I G
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8 Eu Tong Sen Street, #18-83 The Central 059818, SINGAPORE Tel: 0065 6222 4028 Fax:0065 6222 4027 E-mail: singapore@oil-marketing.com
W E B : W W W. OIL-M ARK E T IN G . CO M
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rEpOrTS
IBIA noticeboard Benefits to members as at 1 november 2012 IBIA ANNOuNCEMENtS
At the iBiA Board meeting on Monday 16 April 2012, it was decided that, after eight years, it was time to increase membership subscription rates as follows: Individual membership: £150 Corporate membership: £700 Corporate additional membership: £150
These increases took effect on 1 July 2012 and in future there will be small annual increases. The Board has also decided that the present practice of listing Corporate Additional Members does not properly and fairly meet members’ needs and some changes have therefore been introduced that will more accurately match the benefits of membership to its cost; affected members will be contacted directly by the Secretariat. if you have any queries or comments about these changes, then please `contact ibia@ibia.net or telephone: +44 (0) 20 3397 3850.
IBIA PuBlICAtIONS AND BENEfItS
IBIA World Bunkering Magazine – discounts on advertising
Discounted advertising rates are available for members, representing savings of between £600-800 per advertisement, depending on the advertisement size. please contact the Advertising Sales Team at Maritime Media London on + 44 (0)20 7385 6100
IBIA list of Members
if your details are not correct, please let the iBiA administration know at ibia@ibia.net. This publication is only available to members.
IBIA guide to good Commercial Practice
On sale to non-members at £50 per copy.
IBIA Safety Cards for vessels’ crews
iBiA buyer members receive copies of the iBiA Safety Cards for distribution to their ships, giving basic, plain English advice about safe handling of bunker fuels Please note that all the above publications can also be downloaded by members by visiting www.ibia.net and logging in to your account. Please then go to the download section of the website.
IBIA lOgO IBIA guide to In-line Blending
Free bromide supplied for use by corporate members only.
Available free of charge to members
IBIA guide to Avoiding and Resolving Bunker Disputes
iBiA members receive their personal copy free, but the report is offered for sale to non-members at £50.
IBIA World Bunkering Magazine – free copies for Members of IBIA
please note non-members are requested to subscribe to the magazine at a cost of pounds Sterling £45, £60 or £80 depending on location. Up to 20 additional free copies of the magazine are offered to buyer members of iBiA for forwarding to their vessels.
Evaluate the Merits of a Bunker Claim
interpretation of specifications for bunker fuels and a guide to the question of repeatability. For sale to non-members at £35.
IBIA glossary of Bunker and lubricating Oil terminology
A comprehensive guide to all those complicated terms that are in daily use in the bunkering industry. For sale to nonmembers at £45.
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Reliable, efficient service in ARA and beyond Quick and timely delivery of a wide range of grades Our contact information: Office address: Wilhelminakade 85, Building “De Maastoren�, 36th floor, 3072 AP Rotterdam, the Netherlands Post address: PO Box 24065, 3007 DB Rotterdam, the Netherlands Tel. 24/7: +31 10 264 27 00 E-mail: Bunkers@lukoil.nl
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Tel.: +351 217 240 654 Fax: +351 217 242 957 email: bunkers@galpenergia.com
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rEpOrTS
The International Bunker Industry Association Ltd tHE AIMS Of tHE ASSOCIAtION • To provide an international forum to
• •
•
•
address the concerns of all sectors of the bunker industry To improve and clarify industry practices and documentation To represent the industry in discussion with relevant governmental and nongovernmental bodies and to make the concerns of the industry known to such bodies To assist members in the event of disputes by identifying the options and exploring the alternatives open to them and eventually to provide a panel of experienced mediators and arbitrators To increase the professional understanding and competence of those working in the industry.
IN tHE BEgINNINg
Eight members of the industry conceived the international Bunker industry in October 1992, and the association was formally registered on 29 January 1993. Since then, it has expanded steadily with a worldwide membership comprising shipowners, charterers, bunker suppliers, traders, brokers, barging companies, storage companies, surveyors, port authorities, credit reporting companies, lawyers, p&i Clubs, equipment manufacturers, shipping journalists and marine consultants. in 2012, our membership stands at over 600 and is spread over 87 countries. There are three categories of membership, namely: • individual membership: open to all people with an interest in bunkering, whether they are involved in the day-to-
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day business of bunkering ships or have an interest in the industry. Each member has one vote in association business, but this category does not allow delegation. • Corporate membership: open to companies and associations with an interest in bunkering, whether they are involved in the day-to-day business of bunkering ships or have an interest in the industry. Each member has one vote in association business, but corporate membership has the advantage of allowing companies to delegate different members of their company to participate in different working groups. • Corporate sponsor: this is the newest category and allows a company to contribute any sum they see fit to the association. in return they receive the same benefits as a corporate member but in addition have their logo printed on all iBiA publications and are offered further sponsorship opportunities ahead of other members.
groups and committees that report to the Board. Areas covered have included: • Education • Safety • Technical • Environmental • Commercial • Dispute resolution • Blending The Board and the Secretariat welcome expressions of interest from members to participate in the activities of working groups and committees, and invite suggestions and proposals for further areas of engagement and research.
tHE BOARD
The board is constrained to have a balance of members from each sector of the industry in order to preserve the industry-wide representation and approach of the association. The board regulates the association and is elected by the membership to perform that role. WORkINg gROuPS AND COMMIttEES
iBiA is an association dedicated to its membership and strives to reflect members’ wishes and react to their needs. This is achieved in part by the formation of working
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Membership application
PlEASE PRINt VERy ClEARly
Name of Member
Title (Mr, Mrs, Miss, Ms, Dr, Capt)
Applicants must fill out all appropriate sections including method of payment. Corporate members must give the name of the individual contact.
Company Name Address Tel No
Zip (Postal) code
Country
Fax No
Cellphone/Mobile
E-mail Accounts e-mail for all invoices/accounts queries (mandatory) please indicate your company’s principal business activity: (please mark OnE only) Owner/Charterer/Buyer Supplier
Trader
port Operations/Storage/Delivery
Services (eg legal/financial/analytical)
Broker
please indicate the type of membership being applied for: individual Member £150 Corporate Member £700 (you can list up to two other offices for free with this option online and also in our printed directory, please inform us of these additional offices, when emailing this form to ibia@ibia.net) (please indicate number of offices other than your two additional offices included in your membership as well Corporate Additional £150 as the main corporate account holder officer, which you would like to pay £150 per office to list. We will then contact you for these details.) Please state amount being remitted to us in Sterling £ Individual members must provide the following information: Home address Zip (Postal) Code
Country
Payment instructions
PlEASE PRINt VERy ClEARly
Payment must be made fREE Of All CHARgES at both the paying bank and its overseas correspondent where applicable.
UK Sterling
AMEX
Visa
Telegraphic remittance
Mastercard
Cheque
1. Credit card payment. Please complete following details: PlEASE PRINt VERy ClEARly
Cardholder’s name Expiry date
Card number
/
Security Code (Last 3 or 4 digits on back of card) Billing address Zip (Postal) code Signature
Country Date
2. telegraphic Remittance Bank name and Address: Clydesdale Bank plc, Mountbatten House, Grosvenor Square, Southampton. SO15 2JU. ENGLAND
Pound Sterling: Sort Code: 82-60-04 gB£ Account No: 10247629 Account Name: iBiA Ltd IBAN: gB95 CLYD 8260 0410 247 629 SWIftBIC: CLYD gB2S 3. Cheques Made payable to ‘The international Bunker industry Association Ltd’ Application forms must be sent by mail or by fax to the IBIA Administration office Or apply online at ibia@ibia.net +44 (0) 20 3397 9865 All APPlICANtS MuSt SIgN AND DAtE HERE:
Signature
Date
The Administrator, The IBIA Ltd, Latimer House, 5-7 Cumberland Place, Southampton, Hampshire SO15 2BH, United Kingdom. Tel: +44 (0) 20 3397 3850 Fax: +44 (0) 20 3397 9865
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INDuStRy NEWS
Global round-up Eu clarifies Iran sanctions
international Law firm ince & Co has published an overview of amendments to EU sanctions against iran that came into effect in late December 2012 and clarify the position relating to bunkers. ince & Co says that the relevant EU regulation now provides limited exceptions to the sanctions for bunker oil that originates in iran or has been exported from iran “provided that the bunker oil is produced and supplied by a country other than iran and is purchased for the purposes of vessel propulsion”.
Where a vessel is forced into iranian waters under force majeure, the purchase of iranian bunker oil for vessel propulsion is permitted. The law firm notes that, unlike the other exceptions to the sanctions, there is no requirement to give 20 working days’ advance notice to the relevant competent authority of buying bunkers covered by the exceptions. While bunkers from oil of iranian origin are exempted from the sanctions, the general effect of the amendments detailed by ince & Co is to prohibit almost all shipping-related business with iran. ince & Co’s overview can be seen at: http://incelaw.com/
Tensions are rising in Middle East Gulf
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YOUR FLEET AND CEPSA, THE TIGHTEST KNOT AT SEA. Only with CEPSA you can be sure that your fleet is sailing in the very best of companies. All of our reliability, quality and experience is at your service, to be joined in the firmest combination you will ever find at sea.
www.cepsa.com
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INDuStRy NEWS
Singapore bunker volumes drop
The total volume of bunkers sold in the port of Singapore in 2012 fell 1.2% to 42.7m tonnes, despite more ship calls. The small dip in bunker sales follows years of growth. Back in 2008, the volume of bunkers sold was 34.9m tonnes. in a statement, the Maritime and port Authority (MpA) of Singapore said: “Despite the uncertain global economy and the challenges faced by the global maritime industry last year, the port of Singapore maintained its global lead in annual vessel arrival tonnage and bunker sales, and achieved good growth in container and cargo throughput.” For the first time, container throughput crossed the 30m TEU milestone in 2012, while the Singapore registry of Ships also continued to grow in size and ranks among the top 10 worldwide.
The MpA added: “good progress has been made in developing Singapore as a leading international Maritime Centre. Singapore continues to attract a diverse range of maritime businesses to establish operations here and is now home to more than 120 international shipping groups. The maritime cluster employs more than 170,000 people and contributes some 7% to Singapore’s gross Domestic product.” Annual vessel arrival tonnage reached a record high of 2.25bn gt in 2012, an increase of 6.1%, tankers and container ships accounting for 30.8% and 30.4% of the total vessel arrival tonnage respectively. Container throughput was 31.6m TEU in 2012, a 5.7% increase while total cargo tonnage handled rose 1.2, to 537.6m tonnes. OW Bunker’s lubes deal with Shell Brazil
global bunkers and lubricants supplier and trader OW Bunker has been awarded a contract by Shell Brazil to supply marine lubricants to domestic customers. OW Bunker Brazil says that it is now responsible for the sale, supply and distribution of Shell’s full range of marine lubricants in the south, south east and north east (not including Maranhão State) regions of Brazil. Flavio ribeiro, Managing Director, OW Bunker Brazil, said: “This is a significant contract for OW Bunker Brazil and highlights the strength of our operations in the region, as well as the development of our global lubricants offering. We look forward to working with customers, and providing them with the right lubricant and fuel products that meet the demands of their operations.” Based in rio de Janeiro, OW Bunker Brazil’s lubricants team is led by Marcus Cabral. The company has also further strengthened its team with the appointment of Antonio Mendes. tanker ‘smuggling diesel’
Small dip in Singapore volumes in 2012
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The Malaysian Maritime Enforcement Agency (MMEA) detained a small Mongolian-registered tanker in late December on suspicion of smuggling diesel fuel out of Malaysia and selling it neighbouring countries. Four indonesian nationals were arrested after 200,000 litres of diesel was found to be on board the prattahorn. MMEA officials put the value of the fuel at rM3.6m (US$1.2m), although this seems an exceptionally high figure. Suspicions were aroused by members of the public, who saw fuel being transferred from road tankers to the ship. The ship was intercepted by an MMEA patrol in Teluk Sengat, off Johor state.
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INDuStRy NEWS
Rickmers orders fuel-efficient newbuildings
ISu sceptical about bunker clause
german-based multi-purpose vessel operator rickmers-Linie has ordered two fuel-efficient 20,000dwt newbuildings from China’s Hudong-Zhonghua Shipbuilding for 2015 delivery. According to Ulrich Ulrichs, Managing Director and Chief Operating Officer of rickmers-Linie, the new ships will be known in the rickmers fleet as pX-900-type vessels. He says: “While the design is based on the p1/p2 Type, the rickmers group is working with the yard to develop a more efficient design to reflect current market needs. Significantly improved technical specifications will lead to a substantial reduction in fuel consumption. The optimised hull form and a high efficiency propeller and rudder will enable the new ships to achieve an operating speed of 16.5 knots while using considerably less power and being optimised for slower speeds operating down to 10% maximum continuous rating.” Construction supervision and technical management will be the responsibility of rickmers Shipmanagement while asset and commercial management will be undertaken by rickmers reederei. The ships will be delivered between January and March 2015.
After consulting with owners, the p&i clubs have proposed adding a Bunker removal Clause to Lloyd’s Open Form, the main contract used in salvage cases. Speaking at a press lunch held in London in December, international Salvage Union (iSU) president Andreas Tsavliris complained that the clubs and owners had not consulted the salvors at an early stage before putting together concrete proposals. He observed: “The p&i Clubs suggested this to iSU somewhat suddenly and we are giving consideration to the idea, but i have to say our initial reaction is not positive.”
Singapore bunker licence cancelled
The Maritime and port Authority of Singapore (MpA) cancelled g-Fuel pte’s bunker supplier licence in December for contravening the licence’s terms and conditions. According to MpA statistics, the company was ranked 28th out of 79 licensed bunker suppliers in 2011 in volume terms. The company was found to have breached Clause 3 of the terms and conditions of the Bunkering Licence (Bunker Supplier) by allowing another company to use g-Fuel’s Bunker Delivery notes to supply bunkers to the customers of that company. With the cancellation of its bunker supplier licence, g-Fuel will no longer be allowed to operate as a bunker supplier in the port of Singapore. MpA’s Assistant Chief Executive (Operations), Capt M Segar, said: “All licensed bunker suppliers are required to adhere strictly to the terms and conditions of the bunkering licence and the bunker supplier’s licence is not transferable under the terms and conditions. MpA does not condone such acts and we will not hesitate to suspend or cancel the bunkering licence of any bunker supplier found to have contravened any of the terms and conditions of the bunkering licence.”
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Jamaica ponders bunkering
Developing Jamaica’s bunkering capabilities was the subject of a workshop in Kingston late last year, when stakeholders from throughout Jamaica discussed its future development. According to a statement, Singapore’s nanyang Technological University has been engaged to carry out a bunkering study, with the support of the Commonwealth Secretariat. The team of consultants from nanyang hosted the workshop as part of a three-day factfinding mission to Jamaica, where they also visited the country’s bunkering facilities and met with stakeholders in the bunkering and maritime industries. Maritime Authority of Jamaica director Shipping and policy research, Eric Deans, said: “A successful and competitive bunkering hub will have a positive impact on the dynamism of the Jamaican maritime cluster. Working with the nanyang team, we aim to analyse the current and future bunkering markets and identify the necessary government policies, regulatory framework and operational requirements needed to advance this sector for the Caribbean region.” A report by the Commonwealth Secretariat earlier this year identified Jamaica as an active maritime centre with considerable potential for growth as a bunkering station. The report noted Kingston’s strategic location in relation to the north-south and east-west shipping routes and observed that Jamaica, which is already very active in the areas of transshipment, ship registry, cruise and maritime training, has strong potential to become truly competitive in a host of other maritime and related activities, including shipping services, marine insurance, banking, legal services, dry docking and bunkering.
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ENVIRONMENt
Global measures stay on the agenda
The Doha agreement may have had little direct impact on shipping, but talks are continuing on how the industry can contribute to a climate change fund
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he big news from the Conference of the parties (COp-18) of the United nations Framework Convention on Climate Change (UnFCCC) in Doha in november and December last year was the agreement to extend the Kyoto protocol. That decision was underpinned by discussion and tentative agreement on financial aid to flow from developed states to least-developed and developing ones. That, though, was about it as far as actual decision-making went at Doha. There was very little on offer in terms of reassurance on the future course of the climate change debate as far as shipping is concerned and no text relating to shipping was adopted at COp 18. That is not to say shipping was forgotten by those involved in the hard work of preparing texts for the decision makers. The Ad Hoc Working group on Long-term Cooperative Action (LCA) passed a text to the COp for adoption. This included the following: • Cooperative sectoral approaches and sector-specific actions, in order to enhance implementation of Article 4, paragraph 1(c), of the Convention • Acknowledging the role and importance of sectors in enhancing sustainable development, poverty eradication and improved livelihoods, particularly in developing countries • 41. Agrees that co-operative sectoral approaches and sector-specific actions should enhance the implementation...of the Convention • 42. Also agrees that the limitation or reduction of emissions of greenhouse gases not controlled by the Montreal protocol from international aviation and maritime transport should be pursued in a multilateral manner, working through the international Civil Aviation Organization and the international Maritime Organization (iMO) • 43. invites the secretariats of the international Civil Aviation Organization (iCAO) and iMO to continue to report at future sessions of the Subsidiary Body for Scientific and Technological
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Advice on activities undertaken in relation to paragraph 42 above and on progress therein While this text was not adopted by COp, the language can be seen as revealing the thinking in the LCA discussion. The mood of the LCA discussion appeared to be to continue to require adherence to the principle of Common but Differentiated responsibility (CBDr) – which is fiercely defended by countries including China, Brazil and india – while at the same time recognising the pre-eminence of iMO to legislate for shipping. Another group, Long Term Finance, was working on the funding of climate change response action. Again a text was also developed but not adopted at COp. This text read: “reiterates that the market-based instruments including in the area of global aviation and maritime transportation would generate the necessary price signal to efficiently achieve more emission reductions from these sectors and could generate large financial flows, including for climate finance. in this context, calls for tangible progress within iCAO and iMO towards global and effective carbon pricing schemes, and taking note of the options under consideration for global measures to address emissions in the aviation and maritime sectors.” if this text had been adopted it would have followed that iMO would not only develop an Market Based Measure (MBM) but also that “large financial flows” to the green Climate Fund would be the result. On the other hand, a proposal by the UnFCCC Secretariat to set up a working group between UnFCCC and iMO (and iCAO) to consider possible options for international transport to contribute to the green Climate Fund was not taken forward in any text adopted by COp. While shipping industry representatives were directly involved in the preparation of texts for COp, the international Chamber of Shipping, representing national shipowners’ associations, was active, lobbying at side events for the industry’s views to be taken into
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account. At an event hosted by the iMO iCS Director of External relations, Simon Bennett warned against unrealistic expectations of how much shipping could pay into climate funds, repeating a theme stressed by iCS for a long time. He said: “Some governments appear to be more interested in how much money can be raised from shipping, rather than the emissions reductions that this might deliver. Just because we lack a strong political constituency, we should not be treated as a cash cow. The high cost of fuel, which with the introduction of low sulphur fuel is now set to increase dramatically, means that shipowners already have every incentive to improve their efficiency. governments must also avoid the possibility of modal shift. if excessive costs are added to shipping, there could be greater use of less carbon-efficient shore-based transport modes, which will generate additional carbon dioxide. “As shown by the 2011 agreement on technical measures, iMO is capable of continuing the real progress it has already made on developing Market Based Measures. if governments decided, this could also involve a linkage to the UnFCCC green Climate Fund, as suggested by the recent UnFCCC secretariat report on long-term climate finance.” He added that, in the absence of any clear proposal on how this might be done or what the monies involved might be, iCS had not yet agreed a definite position. However, the majority of iCS members see a mechanism linked to fuel consumption, which as an interim step might involve monitoring and verification of fuel consumption, as being far preferable to emissions trading schemes or any other MBM which risks serious market distortion or damage to the level playing field of uniform global regulation which shipping needs to operate efficiently. Bennett cautioned: “Whatever is eventually decided, some of the suggestions that iCS has seen, from the iMF and others, for shipping to pay over US$25bn a year are totally inequitable and would almost certainly be viewed by developing countries as a tax on trade or as a kind of green protectionism.” A UnFCCC secretariat report on means of long-term “climate financing” had suggested that the international shipping industry should make a substantial contribution to the US$100bn per year green Climate Fund, established by the UnFCCC Conference in Durban in 2011 to finance climate change adaptation projects in developing countries. The iCS was keen to point out that, “with the full support of shipowners”, governments at iMO had already adopted binding global regulations for technical and operational measures to reduce ships’ emissions. Thesecame into force in January this year and will apply to at least 90% of the world’s tonnage. “This will greatly assist the industry in meeting its commitments for a 20% efficiency improvement by 2020 and a 50% improvement by 2050. The immediate priority for the shipping industry is to ensure that the ground breaking iMO agreement on technical measures is fully and successfully implemented,” said Bennett. “Our focus on improving carbon efficiency per tonne-km is thus similar to the approach taken by economies such as China that link efficiency targets to increases in gDp.” The debate on how shipping should contribute to the green Climate Fund will continue this year, but insiders are doubtful that significant progress will be made as there remains a seemingly unbridgeable gap between those defending the UnFCCC principle of CBDr and those committed to no More Favourable Treatment (nMFT), which underpins the iMO principle of ensuring that standards adopted for shipping are applied equally throughout the world. Meanwhile, the European Commission has abandoned its longstanding plans to include the shipping industry in the community Emission Trade Scheme. instead, it is working on a measure to monitor, verify and report on greenhouse gas emissions from the shipping sector and is expected to make a further announcement on this soon.
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ARE YOUR BUNKERING NEEDS A PUZZLE?
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ENVIRONMENt
Four steps to success The Sustainable Shipping initiative has introduced four workstreams, which it hopes will help it to realise its vision for the future
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he Sustainable Shipping initiative (SSi) says it is taking practical steps to tackle some of the sector’s greatest opportunities and challenges and is working to achieve a vision of a shipping industry that is both profitable and sustainable by 2040. SSi, which is “facilitated” by Forum for the Future in conjunction with the World Wildlife Fund, has announced it will report on progress by its four initial “workstreams” in September this year, at an industry event in Singapore. The relatively new group says it has now built up a cross-industry coalition, including Maersk Line, Cargill, Lloyd’s register, DnV, Wärtsilä and Daewoo Shipbuilding and Marine Engineering (DSME). The SSi was founded in 2010. in May 2011, it published a Case for Action that addressed key challenges that today’s shipping industry faces, such as a potential contraction in world trade, rapid changes in routes and markets, rising fuel costs, oversupply of vessels with obsolete technology, restricted investment in new technologies and growing scrutiny of the industry’s social and environmental performance. in April 2012, at Singapore Maritime Week, the SSi announced details of four initial workstreams, aimed at implementing its Vision for 2040. These address the areas where collective action has the greatest potential to accelerate change and are driven by SSi members. The finance workstream is tackling the problem that charterers and shipowners have different incentives to save fuel. This is stifling the retrofit of new technologies on to ships that have proven performance and business cases. The participants will innovate and pilot a new financial mechanism that shifts the risks and returns, Maersk Line is part of the Sustainable Shipping Initaitive
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WEST & EAST AFRICA ATLANTIC/INDIAN OCEAN CANARY ISLANDS
and enables successive charterers to benefit from fuel savings while paying a premium to the owner so that the investment in new technologies can be repaid over time. The materials management workstream is developing systems to trace and track all the materials used to build a ship. The goal is to achieve full transparency and accountability for the social and environmental impacts from construction through to recycling of ships. The energy tech workstream is working on technologies and techniques that will deliver a step change in the energy requirements and resulting emissions of vessels. Focusing on the opportunities created by wind assist and air lubrication technologies and a set of low-energy marine operational techniques, participants are developing robust business cases that can provide the information companies need to justify large-scale investment in lower energy marine technologies and techniques. Finally, the credible benchmarking workstream is focused on helping the shipping industry navigate the growing number of beyond-compliance rating schemes, which will enable greater uptake and drive improved sustainability performance. The group will develop an independent reference/guidance resource for stakeholders designed to increase awareness and assist in selection and use of the existing rating schemes.
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INtERVIEW
Quantity matters FOBAS’s global Manager Douglas Raitt tells Sandra Speares
that work with bunker quantity measurements has been a growing area of business for the testing company in recent years
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ne key issue Fuel Oil Bunkering Analysis and Advisory Service (FOBAS) global Manager Douglas raitt highlights is that with the increase in the cost of bunkers over recent years, there has been a direct impact on the growth of bunker quantity measurement surveys. “general depressed earning capacity in the industry has turned market participants’ focus much more on reducing costs because the income is not there, so that every single cent the shipping companies can save in procuring fuel they will take that on, and at FOBAS we are doing a lot of bunker quantity surveys on the back of that development,” he explains. When earnings were high, then fuel buyers tended to be less focused on “nickeling and dimeing” their costs, he said. The cost of bunkers has almost doubled in the past three years: in 2009, raitt says the average bunker stem was about $375 per metric tonne and in 2012, the average was about $665 per metric tonne. This has given FOBAS the opportunity to grow its bunker surveying business and, at the same time, ensure that fuel buyers are safeguarded in being able to monitor their procured bunker delivery quantities accurately. given the precarious situation at the moment with developments in Europe and the US, accurate predictions on fuel prices going forward are not easy to make, he explains. That said, he believes the prices will not come down and longerterm trends would suggest that they will increase further. Hopes that bunker prices will return to the glory days are somewhat naive, he says. ”On the back of that, the need for bunker quantity measurement services will continue to be widely adopted by the industry.” Another future possible regulatory issue he raises is one of market-based measures to deal with the carbon emission issue as far as shipping is concerned. if a levy were to be introduced on bunkers
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FOBAS’s Global Manager Douglas Raitt
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received, he expects an “explosion” of independent measurement services could materialise “because it is directly linked to any financial instrument that the shipping market will have to comply with in the longer term”. The quantity of bunkers will clearly be a key issue in determining how much levy marine fuel buyers are required to pay. Although the jury is still out as to how the issue of market-based measures will be dealt with and it may be a long time coming, some suggest that a bunker levy is the simplest solution, raitt says. However, there are different views with some favouring an incentive rather than a punitive-based approach with regards to such measures. Cappuccino bunkers (fuel oil frothed with entrained air) are another concern that has been prevalent in recent times and was, raitt says, a hot topic in 2012. However, in part due to the market downturn in shipping, the awareness of the issue in the industry has risen and resulted in fewer instances in the past few months because the market is more aware of it now, he says. Some operational aspects of bunkering, such as line clearing at the end of a delivery, could inadvertently lead to an increase in the volume being measured at the receiving ship’s end. “Any surveyor worth his or her salt should be able to identify this at source. not all cappuccino allegations were necessarily concluded,” he says. problems occur if the ship has already left port and has been at sea for several days, which means that any surveyor’s investigation would be virtually useless. identifying the problem in port is therefore key to the process. “The ones that i have viewed personally and which can categorically be stated as cappuccino bunkers are ones that happen on the spot and where you see physical evidence.” He cites as examples air bubbles on the gauging tape or a fluctuating pressure gauge at the manifold during delivery,and says that the owner can then be advised of the issue before the vessel has set sail. Quality of surveying
So is quality of surveying an issue? raitt says that all surveying companies make sure that their surveyors have adequate training and in some areas, for example in the port of Singapore, a licence is needed to be a bunker surveyor. There are evidently international standards to be complied with as well that define how bunkers are to be delivered. What can not be ruled out is an unscrupulous surveyor. in these cases, he says the situation must be dealt with quickly. in cases where anomalous supply problems have been experienced, FOBAS will advise its surveyors of the broader findings and experiences in order to raise awareness of such issues and to ensure that they are not caught off guard during future bunker deliveries and associated quantity surveys, raitt says. in terms of fuel quality, so far as meeting the new sulphur requirements is concerned, raitt says that he thinks what some people misunderstand is that “residual fuel oil is a valuable quality product that suppliers will blend to meet the target in order for the fuel to be fit for purpose”. Historically, this only meant blending to meet viscosity and density requirements, but things have changed in the past 10 years, where blending is done to meet sulphur requirements, with lighter products needing to be cut into residual fuel oil to meet them. As a consequence, there has been an increase in cat fines and other contaminants coming into the supply chains as suppliers need to take a variety of cutter stocks to cut the sulphur content down. raitt says this issue is likely to continue and “we will probably find problems with fuels that we have not even considered today”. The revision of iSO8017 encompasses such testing parameters as lubricity, oxidation stability and fatty acid methyl ester (FAME) and “future proofing the standard for the fuel oils to come”, he says.
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“At the moment, we are pretty much dealing with residual and distillate related products, but as we cut the sulphur content down, we will get more quality issues that we may not be aware of now. “ For example, he says, lubricity is not technically a problem in the current market, with the advent of the emission control area and the drop from 1.00% sulphur to 0.10% in 2015 “we may well see lubricity related issues with distillates coming into the marine market when the sulphur content is cut down drastically with a corresponding cut in viscosity”. Likewise, oxidation stability for distillates is not a problem at the moment, but may prove to be one in the future if more bio-derived material is being blended in marine distillates, raitt warns. “For marine use, we do not really know what the consequences will be of bio-derived materials being blended for marine applications. The future is unknown, but one thing we can say is the characteristics of fuel will continue to change as the sulphur content gets tighter and tighter.” low sulphur fuels
As far as availability of low sulphur fuels to meet ECA requirements is concerned, while there may have been some density and viscosity issues at the start of the new US ECA, these have been largely resolved and there does not appear to have been a supply problem. The US regulator has also taken a reasonably relaxed approach to allowing vessels to enter the ECA that have not been able to source low sulphur products, provided of course the operator is up front about the issue and provided they acquire fuel oil with the right sulphur content as soon as possible. raitt believes that up to 2020 availability should not be a problem because the market will be amply supplied with residual products as well as distillate products. After 2020, when the global sulphur cap falls to 0.50%, the question will be whether there are enough distillates to meet demand in the maritime sector. prices are likely to go up and there is will be competition between the marine and land-based sectors on demand. There is, of course, also the issue of whether scrubbing technology will mean ship operators can continue to use residual fuels oils. Evaluation of supplies is due to take place in 2018, but there are arguments in favour of putting this date forward. One problem is whether industry players have any incentive or time to invest if they do not know if 2020 is a hard feasible deadline; the other is whether two years is sufficient for resource allocation purposes to meet the global cap of 0.50% pending the outcome of the study. raitt says he agrees with other industry players that the sooner availability of supplies is done the better, as the industry will then have more time to adjust. One further issue raitt highlights is the drive to get mass flow metering into the industry, thus deploying a more technological approach. in Singapore, he says, some port authorities are keen to move forward on the flow meter issue. While some people consider the advent of the mass flow meter may herald the death of the bunker surveyor, raitt’s personal view is that this will not be the case, but will just mean that the surveyor will have to adjust to new technology and how it will improve the bunkering process. “Where there is a willing buyer and a willing seller there will always be the need for an independent third party to verify whatever was sold or bought in the right quantity. in the case of bunker fuel oil, if a mass flow meter will dramatically improve the process and the accuracy of the whole bunker delivery, the third party surveyor is still needed there to verify on behalf of all participants that what the mass flow meter was saying was delivered and if problems are encountered to objectively report findings.”
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INtERVIEW
Sohar so good
The Omani port of Sohar may be the new kid on the Middle Eastern block, but it has already taken full advantage of its strategic location, as its Executive Commercial Manager, Edwin lammers, explains to David Hughes
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man has the advantage of both being very close to the gulf and its concentration of maritime trade, and at the same having an indian Ocean coastline. Until fairly recently, however, the north of the country – closest by road to the business centres of the UAE – did not have a large commercial port. it certainly does now. i talked to its Executive Commercial Manager, Edwin Lammers, about why the port was built and what has driven its subsequent development.
Why was it decided to build the port?
traders and shipping lines to serve their customers without having to enter the gulf itself. “Sohar is located only two to three hours’ drive from large consumer areas including Dubai, Abu Dhabi and Muscat. it goes without saying that this strong point is noted in the current times of tensions around the entry to the gulf. Many shipping lines and local producers are seeking – and have actually started using – alternative locations on the Sea of Oman and indian Ocean. “Due to Sohar’s access to good land and sea roads, it is considered one of the main alternatives, not only for the transport of goods, but also for marine services such as bunkering, crew change and STS operations.
“in 2002 a joint venture was established between port of rotterdam and the Omani government to create a new economic hub in the region. The country’s vision is to develop new economic sectors that will be, in the long run, less dependent on the oil and gas revenues. Besides that, as Sohar is located in a largely populated area, the government puts strong efforts in creating jobs for the young workforce in the region. The port’s construction had already started in the late 90’s, but it is was found that a strategic partner was needed to actually develop the port. With port of rotterdam, this partner was found and the start of the clustering of the industrial-orientated port was initiated shortly after the inception of the JV Company.”
to what extent is Sohar’s location outside the Strait of Hormuz a strategic advantage in both commercial and geo-political terms?
“The strategic location outside the Strait of Hormuz is one of the key unique selling points. Together with the available and upcoming multi-modal infrastructure, it offers an excellent opportunity for
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Being close to the major shipping lines, with less deviation time than towards traditional marine service areas in the UAE, the uncongested port of Sohar is an attractive stop for these services.”
What is the main commercial activity at Sohar Port and what volumes are being handled?
“The port consists of two main clusters. in order to optimise land utilisation, port of rotterdam introduced the cluster principle, meaning that after identification of strong potential areas, the infrastructure is set up as such that industries are located in dedicated clusters. For Sohar, it was determined that the two areas of biggest potential are the petrochemical sector and the steel/mineral sector. “While the first part seems a logical conclusion based on the country’s natural resources, the second part was based on intensive studies done in the beginning of the development. it was recognised that the region has a large deficit of steel production, but a great need for it over the years. The development of a local steel sector therefore became a successful initiation for port of Sohar. Two large well-respected players, Vale from Brazil and Jindal from india, have proved Sohar can fulfil the regional hub role, not only for containers, but also for the steel and petrochemical industries. “The port is celebrating its 10th anniversary this year by continuing the double digit growth it has achieved from the start. This year, the cargo throughput figures estimate that a total volume of approximately 40 million tonnes will be reached. The main contributors to these figures are the liquid bulk handling (approximately 15 million tonnes) and the dry bulk handling (approximately 21 million tonnes).”
to what extent does Sohar Port see itself in direct competition with fujairah? Has the recent downturn in shipping led to fiercer competition in the region?
“it is evident that Fujairah is the goliath in the region with respect to marine services. port of Sohar is not aiming to take over this position, but wants to bring additional quality services to the portfolio. Our vision is to be a world-class port and our highly reputable shareholders demand the same from us. We have therefore put strict license conditions to the service providers in the port and monitor the operations closely to verify their adherence to these conditions. “port of Sohar is an attractive location and is is therefore possible to convince owners that seek uncongested and high standard servicing of their vessels to deviate from Fujairah to Sohar.”
What plans are being made for Sohar’s future development?
“A port development is a strategic infrastructure for a country. it is therefore important to continue short term developments on the basis of a long term vision. For that reason, port of Sohar has a Vision 2030, but is also at this moment taking strong decisions to further increase the port capacity. “This has not only been shown by the 2013 plans for the construction of a new liquid jetty and the reclamation of an additional 130 hectares of land, but is evident in the expansion next year in tug and pilotage services and the expansions for the container terminal and general cargo terminal. “Although the additional volume resulting from the closure of Muscat port can easily be accommodated on the existing terminals, port development also requires strategic longer term planning to cope timely with future growth.”
How important is bunkering to Sohar?
“it is critically important that port of Sohar can provide bunkering services. it attracts non-captive ships to come to the ports’ perimeters and take the required services. This offers a larger volume base for the service providers in the port. “With the resulting economy of scale, the captive port users benefit from competitive service charges resulting indirectly in costs reductions for the supply chain in Oman. As an additional benefit, the local economy benefits from the auxiliary services of providing ship supplies, provisions and receiving seafarers in the local markets and malls.”
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tRADERS
Swap shops
As Sandra Speares reports, more electronic products are available to traders looking to manage risk. plus a look at the Chinese markets
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s bunker industry players seek to manage risk in the sector, there have been a number of developments in the use of electronic platforms for fuel oil trading in recent months. in October, Cleartrade Exchange announced that it was planning to list innovative bunker fuel swap contracts on the exchange, in order to provide further risk management options for traders in Singapore and rotterdam fuel oil markets. The company announced the listing of three fuel oil, single swap contracts, which allow bunker traders and users to execute swaps of as little as one metric tonne of fuel oil via the CLTX OTC commodity and freight derivatives platform. The new contracts are the widely traded Singapore iFO180, iFO380 and rotterdam barges 3.5% sulphur, with settlement against the platts Fuel Oil price Assessment. Take-up is understood to have been good since the launch date. “The addition of these new contracts builds on the Cleartrade Exchange strategy of delivering more effective price discovery, building liquidity and facilitating best execution in OTC derivatives markets. it also extends the ability of the members to manage risk across a suite of interlinked swaps and options, including dry bulk freight, iron ore, steel, coking coal and fertilisers,” the company said. “Adding these contracts is a response to demand from our members and the wider market to enhance our range of tradable asset classes. We have already demonstrated with the Virtual Steel Mill concept that we can respond to emerging market needs,” said richard Baker, CEO of Cleartrade Exchange. “The introduction of the highly liquid bunker fuel contracts to our regulated marketplace is the latest demonstration of our commitment to developing these products further.” With the heightened volatility in crude oil. as well as supply shortages and civil unrest in the Middle East, “we can expect bunker costs to be the greatest burden for the shipping industry for the foreseeable future,” the company said. “ A capesize operator looking to hedge a full year contract at 20 days a month could save a
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Richard Baker, CEO of Cleartrade Exchange
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substantial amount. Using the average monthly bunker price during 2011, a charterer that hedged his fuel exposure of approximately 12,000 tonnes in the prior year for $570 could see a saving of $1.36 million over the year on that one vessel alone. The importance of bunker hedging cannot be overlooked.” Morten Erichsen, president nOS Clearing, commented at the time of the launch that: “The advent of the Fuel Oil Single Swap on Cleartrade Exchange addresses the requirements of a large sector of the market that needs to trade this commodity in parcels of hundreds rather than thousands of tonnes. For the benefit of our members, nOS Clearing is happy to expand our six month old single swap service to include clearing services for the Cleartrade Exchange marketplace, enabling market participants to execute and clear these contracts efficiently and cost-effectively.” Cleartrade Exchange announced new agreements with a number of its members to extend liquidity provision into several new asset classes at the beginning of December. The agreements mean that CLTX now provides firm, two-way prices on several of its iron ore, fuel oil and dry freight contracts during the trading day. “We’re delighted that we’ve been able to work with our members to add guaranteed, firm price coverage to more of our markets. The dry freight, iron ore and fuel oil contracts, whilst key in their own right, form the backbone of risk management activities on the input side of the steel supply chain,” said Bob Antell, global Business Development Director at CLTX. Chinese market
Meanwhile, China Marine Bunker (petrochina) Co. (Chimbusco) has signed a strategic co-operation agreement with Beijing petroleum Exchange in Beijing at the end of november. Beijing petroleum Exchange launched its fuel oil futures trading platform the same month. Under the terms of the agreement, “Chimbusco will provide Beijing petroleum Exchange and its member entities with quality and efficient warehousing logistic service. At the same time, both parties actively seek co-operation in fuel oil resource placement and shipping logistics for the purpose of jointly promoting regulated and scale-based development of the trading of petroleum and petrochemical products.” Bonded bunker traders had five places in China’s top 10 fuel oil importers in 2012, including Chimbusco, Sinopec Zhejiang Zhoushan petroleum, Shenzhen Brightoil, China Changjiang Bunker (Sinopec) Co (CCBC) and petroChina – TAFO according to iCiS C1 data. The combined fuel oil imports of the five bonded bunker traders rose year on year in 2012 amid developing bonded bunker market. Chimbusco, Sinopec Zhejiang Zhoushan petroleum Co and CCBC all recorded higher imports in the year. However, the imports of Shenzhen Brightoil and petroChina - TAFO declined. Chimbusco still ranked as China’s largest fuel oil importer in 2012, with its imports hitting 6.05m-6.25m tonnes, up by 10% year on year. Sinopec Zhejiang Zhoushan petroleum Co, which took second place, imported 2.3m-2.4m tonnes, up by nearly 40% year on year. Shenzhen Brightoil ranked the third, with its imports down by about 20% to 1.4m-1.5m tonnes. CCBC and petroChina - TAFO ranked the eighth and the tenth, respectively. SinoBunker, however, failed to emerge on the top 10 list with its imports down to about 220,000 tonnes. Fuel oil importers took the other five places in the top 10 list. Chinaoil ranked fifth, with its imports down by 76%, because it mainly acted as the agent. Shandong Dongming petrochemical group, which mainly imported Venezuela 380cst fuel oil via Chinaoil, had its name in
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The Chinese market is growing
the top 10 list for the first time. The independent refiner recorded around 700,000 tonnes of imports in 2012, taking the fourth place. China Arts Huahai import & Export Co and Qingdao Yijia Haiye Trading, which mainly imported fuel oil for independent refineries, maintained stable imports in 2012. Mercuria imported 400,000-450,000 tonnes of fuel oil for independent refineries in east China. Most of its imports were russia M100 straight-run fuel oil. Meanwhile, petroChina Dongying Sales Co in Shandong province plans to start internal-trade bunker business in the middle of February, a source with the sales company is quoted by iCiS C1. “We plan to begin with Dongying city and expand our business to nearby ports such as Weifang,” said the source, “in addition to gasoil oil, we will also supply 180cst and 120cst fuel oil.” There are already four bunker suppliers at Dongying and petroChina’s participation will intensify local competition, according to iCiS. petroChina has started internal-trade bunker business at the Weihai port in Shandong province. Asian demand for bunker fuel is projected to grow at 3-4% in 2013, tracking growth in world trade as global economies recover, analysts told reuters. China’s exports are forecast to grow by 8-9% this year, after expanding at the fastest rate in seven months in December, adding further evidence of a steady economic revival. The appetite for bunker fuel in 2012 was largely lacklustre, with annual sales in Singapore, the world’s largest bunkering port, registering a 1.2% all to a two-year low of 42.7 million tonnes, according to official advance estimates. “Bunker fuel demand will recover strongly this year in China and Singapore, but (this growth) will be offset by the decline in the power sector, keeping demand essentially flat,” Wood Mackenzie analyst Sushant gupta was quoted as saying.
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leading the way in Colombia’s ports C i international Fuels has just opened its refinery at Santa Marta, Colombia, in order to produce its own fuel, iFOS and diesel to supply the bunker business in the Colombian Caribbean. With this refinery, we can cover the needs of terminals in pozo Colorado and Drummond port. This new refinery is owned by international Energy group iEg, of which Ci international Fuels is sole shareholder. Ci international Fuels also manages crude exportation, from Santa Marta to EEUU in quantities of 110,000 barrels every 20 days, expanding its operations to include selling heavy crude. For these reasons, Ci international Fuels is renowned as being one of the most important bunkering companies in the country. The continued economic growth and improved security in Colombia, plus the exportation of low-sulphur crudes from the ports of Santa Marta and Cartagena, has made the past four years a period of dynamic growth for Ci international Fuels – one in which it has gained a larger market share. As a member of the international Energy group (iEg) and with its principal offices located in Barranquilla, Ci international Fuels differentiates itself from competitors by its spirit of innovation and technological know-how and in delivering to its clients a service with attributes that include security, flexibility, quality and fulfillment.
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Service
Ci international Fuels is a leader in Colombian territories, but especially in the ports of Cartagena, Santa Marta, Buenaventura and Barranquilla, where it offers customers crudes, iFOS, diesel and lubricant products, with a fleet of more than 11 boats, from two refineries and two crude storage terminals. its success is based on a vertical structure: logistics, financial support and security provide its operations with quality products, assisted by a talented team of staff within the company. Competitive prices as well as quality
Ci international Fuels supplies, markets, refines and exports petroleum and bunkers. it also provides an excellent service with competitive prices, due to the fact that Cartagena is the largest Colombian port and vessels choose to bunker there, as well as in Santa Marta, Curacao and Cristobal. With a great platform of quality and environmental management, the company adheres to the codes and iSO specifications, along with several internal practices that assure its professionalism and efficiency. As an iBiA member, the company is fully compliant with OHSAS BASH security and occupational health.
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for more information, contact: Calle 77B No 59-61 Office 1101, Centro Empresarial \las Americas II tel: (57) (5) 3693777 E-mail: manager@ciinternationalfuels.com Website: www.ciinternationalfuels.com or www.ieg.com.co
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fuEl QuANtIty
Reaching a milestone
A number of years of hard work developing mass flow meters paid off for Singapore last year when the first officially approved bunker stem took place using one and delivery), temperature, pressure and bi-directional (forward and reverse) flow.
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n ExxonMobil-chartered bunker tanker last Julyan became “As the Singapore 7 Attain accuracy error of world’s ±0.1% largest of thebunkering measuredport, quantity for sees watermore the first in Singapore to use a masscalibration flow metering than 40 million tonnes in bunker sales each year. it is important for the mass flow meter. system approved by the Maritime and port Authority for us to leverage on technology to further enhance the efficiency Submit the water and calibration reportof issued by the Recognised Testing of Singapore (MpA) for bunker fuel8 transfers. transparency the bunker delivery process. We have set to WMO aside for review, evaluation and acceptance. The custody transfer between theLaboratory bunker tanker $1m from the Maritime innovation and Technology Fund to Emissary and the containership Kota Layang followed specific approval by MpA for the adoption of the mass flow metering system by the Emissary. Level 2 – Bunker Fuel Calibration / Conversion The key convenor of the working group developing the use of Requirements such metering, Teh Kong Leong, said at the time: “The activities 9 Send the mass flow meter for bunker fuel calibration to a SPRING-designated of the group, together with MpA, Recognised Testing Laboratory. For conversion of volume uncertainty Spring and in partnership with measurement to mass uncertainty measurement, submit the uncertainty ExxonMobil, support the validameasurement attestation from a recognised and reputable national metrology tion and endorsement of a mass institute. metering option for the bunker industry in Singapore, with tangi10 Attain an accuracy error of ±0.2% of the measured quantity for bunker fuel ble benefits for both deliverer and calibration (inclusive of the conversion) for the mass flow meter. customer in the form of a secure and accurate system, enhanced trans11 Submit the calibration report and/or volume to mass conversion uncertainty parency, improved efficiency and measurement attestation to WMO for review, evaluation and acceptance. cost effectiveness.” 12 Once a written acceptance of the compliance with Level 1 and 2 is given by MpA’s Director for port Services, WMO, the mass flow meter can be installed onboard the bunker tanker. Dr parry Oei, said: “The transfer of bunkers using the mass flow 13 When the mass flow metering system is ready for official trials, request for metering system as another official mass flow meter zero verification with stamping (including sealing) to be custody measurement of bunker carried out by WMO. A verification certificate will be issued by WMO. quantity is a significant milestone for the bunkering industry in Singapore.
Level 3 – Mass Flow Metering Trials
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Requirements
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14 Propose members to MPA for formation and appointment of a Focus Group comprising the mass flow meter vendor, bunkering services providers, National Metrology Centre, WMO and MPA.
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support further research, development and test-bedding of mass flow meters for bunkering applications.” At last year’s Singapore international Bunkering Conference and Exhibition (Sibcon) there was an indication of what Dr Oei meant by “further research, development and test-bedding”. Minister for Transport, Lui Tuck Yew, recently announced publication of an industry guide for the use of mass flow metering system. This provides an overview of the requirements for applying the system during bunker deliveries in Singapore. it is available on MpA’s corporate website at www.mpa.gov.sg/sites/ pdf/mass-flow-metering-guide.pdf. With the introduction of the industry guide, MpA hopes to encourage more bunker players to adopt the meters in order to promote the development of a Singapore Standard for Mass Flow Metering System in the future. One thing is very clear from the Singapore experience, which is that relying on flow meters instead of measured ullages is not just a case of fitting the equipment on the bunker barge and using it. As would be expected, the MpA and the working group overseeing the development of flow meters have gone to a lot of trouble to ensure there will be a system in place that will guarantee accuracy. The accuracy of the equipment fitted on each bunker barge has to be verified, first of all using a measured
quantity for water. At this stage an accuracy error of ±0.1% must be achieved. Then the mass flow meter for bunker fuel calibration is sent to a recognised testing laboratory with an uncertainty measurement attestation from a recognised and reputable national metrology institute. This enables the conversion of volume uncertainty measurement to mass uncertainty measurement. The equipment has to reach an accuracy error of ±0.2% of the measured quantity for bunker fuel calibration (inclusive of the conversion) for the mass flow meter. The meter can then be installed on the bunker. At least three official trials on the system must be conducted onboard and an accuracy error of ±0.5% achieved. The painstaking process of installing flow meters may mean that its take-up is gradual and, certainly, discussions at Sibcon did not indicate that there would be a stampede towards using it. nevertheless, there now seems to be acceptance throughout the industry that meters will become the industry standard. Maersk, for example, has fitted flow meters to is extensive fleet, but with its massive buying power, the Danish shipping giant can specify use of the meters. The rest of the industry may take some time to catch up, but the advantages of eliminating quantity are so obvious that there is little doubt that using flow meters will sooner or later become standard practice.
Launch of the first officially approved mass flow metering system for commercial delivery in Singapore
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going with the flow Continuous, direct and accurate measurement of bunkers Introduction
The expectation is that when using Coriolis mass flowmeters for bunkering, the user gets a “continuous” “direct” and “accurate” measurement of the bunker. is that actually the case? This article attempts to dispel some of the myths, report the reality and explain how the design of mass flowmeter technology has to change to meet the market expectation. There are, in truth, two primary issues in bunkering where mass flowmeters in the past have not been optimised to meet the process. The first is air entrainment, known in the industry as the cappuccino effect, and the second is high viscosity fluids, especially where viscosity is variable. So far, the mass flowmeter suppliers have attempted to provide corrections for viscosity and air entrainment, but these corrections use very limited information and are only valid over restricted ranges of operation and therefore intervention is required when these operating conditions are not met. First, taking viscosity effects into consideration, HFO fuel viscosity varies rapidly with temperature. Based on the measurement principle mass flowmeters should be completely viscosity independent, but in the application and the mechanical design of the sensor viscosity effects creep in causing non-linear measurement errors. This is especially the case in bent tube meter designs where the bends cause disturbance in the flow, which can result in reverse flow around the sensors at certain flow rates. Second, and this will
be explored more closely below when we discuss the effects of air, viscous products cause damping in the measurement system. Cappuccino performance
The ‘cappuccino effect’ is widely debated across the industry and is given as a primary drive to move to direct and continuous measurement of bunkers. But air entrainment to date causes measurement errors in all mass flowmeters. Why and how does this occur? The cappuccino effect is gas in the fuel oil, or what is known as two phase flow. The percentage of gas is called the gas Volume Fraction or gVF for short. But this is only one measure of the gas in the fuel oil. Unfortunately, mass flowmeters are not only affected by the percentage of gas, but also the operation and performance of the meter is affected by the morphology (size, shape, distribution) of the gas in the fuel, the viscosity of the continuous phase, the operating pressure and the surface tension of the fuel. no bunkering measurement system corrects for all these issues and each meter type and size from each manufacturer is affected differently, so correction modelling is very complex. Most mass flowmeters provide a two-phase flow alarm signal, but none of these actually provide a real measurement of gVF. The reason for this complex issue comes back to the question of damping. Mass flowmeters are a vibrating system, the fundamental expectation is that the system vibrates and the fluid within the tube acts as a single body. However, when gas is present it is compressible and this, combined with a high viscosity fluid which takes more energy input to drive the measurement compared to water, results in the meter operating on the limits of its capability and causes measurement errors in both mass and density. The air also causes “noise” as the air hits the walls of the measuring tube, which, depending on the morphology, causes huge variation in the measurement error. As the system cannot measure density accurately or repeatably, the gas volume fraction cannot be determined.
Non-linear entrained air measurement error
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Bunkering mass flowmeter – ease of installation
Straight tubes – for low pressure drop
the bunkering system approval
but this results in the “noise” caused by air only being amplified, resulting in loss of meter control, density measurement and unreliable mass flow readings. The selection of operating frequency is also critical: too low and the system is sensitive to noise from the operating environment; too high and any air present results in almost instantaneous loss of measurement control from which it cannot recover. KrOHnE has now launched Coriolis mass flowmeters with synthesised digital drive control, along with its proven high resolution digital signal processing: the oscillation is produced using a digitally generated and therefore known drive frequency. The measuring tube oscillation occurs due to this driver, so the frequency of the measuring tube is also known precisely. This connection does not change, even with gas bubble disturbance or viscosity effects. The measuring instruments internal control loop remains “clean” and is not disturbed by interspersed and amplified “noise”. in this way, the meter can accurately measure amplitudes and phases, even in disturbed two-phase flow conditions. The device remains in continuous controlled measuring operation, even if there is gas content or slugs of gas from 0 to 100% by volume in the fuel oil. KrOHnE has also pioneered bulk transfer mass flowmeters with twin straight tubes suitable for bunkering applications that are far more compact than the traditional, cumbersome twin bent tube meters. This ease of installation and small installation envelope combined with the natural viscosity insensitivity of the innovative straight tube design coupled with the synthesised drive will deliver mass flowmeters for bunkering that provide the operator with “continuous” “direct” and “accurate” measurement of the bunker stem. KrOHnE continues to work with customers to enhance this portfolio of products in bunkering and allied sectors such as fuel consumption measurement and lube oil monitoring. KrOHnE’s marine systems division, KrOHnE Skarpenord, has developed in parallel EcoMATE®, a portfolio including fuel consumption and bunkering monitoring.
So how is an approved system possible? The only way is, as stated before, by restrictions of operation. We may bunker for eight to 20 hours; if air is only present for limited period during this time the total error caused by the air should be small in comparison and the overall accuracy of the bunker is maintained within the OiML r117 Class 0.5. When air is present in the system, manual intervention is required to increase the back pressure on the meter to reduce the impact on the meter performance. This requires personnel to be present and trained to react to maintain the bunker system measurement accuracy. going forward, this is not the right way. To date, so much effort has been expended in correction models, which can, if the bunker process conditions are not as expected, result in unidentified and unquantified measurement errors. This is why in Singapore, Spring and the MpA have put so much effort into developing an approval process for mass flowmeters starting with a meter that is fully traceable when calibrated on water. The second phase ensures the meter is not too viscosity sensitive and then, third, conducting trails of the complete system and correction models on a bunker barge. This process is in place to ensure that the flow measurement system performs within the Class 0.5 guidelines of OiML r117 when operated with the stated operating limits of the measuring system. A change of mindset
KrOHnE is looking at the problems from a different perspective. Two-phase flow with gas is common in many process applications of mass flowmeters and is, in our experience, a common cause of measurement inaccuracy, so surely the Coriolis mass flowmeter can be designed to be more accurate and repeatable when gas is present in a fluid? Can we reduce the complexity of the correction models and measure “direct” and “accurate” with fewer limitations that stop “continuous” measurement? By starting from the beginning and looking at how a meter fundamentally measures and operates, KrOHnE has used its experience of complex and difficult process applications and 30 years of research to redefine the mass flowmeter. When KrOHnE first launched its mass flowmeters in 1986, it was with digital sensor signal analysis. Others followed, but not for many years. Until now, the drive control system has remained analogue,
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for more information, contact Colin Cheeseman, Product Manager – Mass flow tel: +44 1933 408 528 E-mail: c.cheeseman@krohne.com
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Profitable voyages depend upon bunker fuel quality. Staying in business means staying on schedule. Poor-quality bunker fuel represents one of the biggest threats to keeping your schedule and profitability intact.
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Intertek ShipCare provides fast, accurate testing for bunker fuel quality, helping avoid costly repairs and downtime.
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tEStINg
An uncertain future
Michael green of intertek Lintec ShipCare Services looks back at the events of 2012 – and reaches for his crystal ball to look at what is in store this year
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s another year has reached its end and the final days of 2012 have disappeared over the horizon, we can look forward to being able to pre-empt some of the challenges to be faced in the coming 12 months. Often, the events of the previous year can provide an indication of what can be expected, but in the continuously shifting world of shipping, the only thing that can be guaranteed is yet more change. When looking back at previous years, both 2010 and 2011 proved to be key in defining the future of global shipping, and it is fair to say that 2012 was another pivotal year. We can all learn with the benefit of hindsight, but had we been furnished with the luxury of a fully functioning crystal ball on 31 December 2011, it is doubtful that we would have been able to totally appreciate what the following 12 months would bring – a year of ongoing legislative change, the evolution of testing standards and also continued challenges relating to fuel quality. On 1 January 2012, the shipping world embraced yet another pivotal legislative change with the introduction of the 3.50 per cent global sulphur limit. More was to follow in the ensuing months with the enforcement of the 1.00 per cent sulphur limit in the US ECA on 1 August. Although no further legislative changes relating to sulphur content of marine fuels are expected in 2013, it does not mean that this is an issue to be overlooked. Ship owners and operators will still need to maintain a keen focus on balancing the need for reasonably priced good quality fuel combined with legislative compliance. As has been noted on previous occasions, for some shipowners the aspect of compliance is one of – if not the major – consideration with regard to the day-to-day operation of their vessels. Looking at fuel quality trends across 2012, the evidence of legislative change was clear to see. For some time now, parallels have been drawn between fluctuations in fuel quality and significant alterations to legislative requirements, and this pattern was apparent once again. Following the reduction of the global sulphur cap, the number of
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submitted samples tested by intertek Lintec ShipCare Services that showed one or more parameters in excess of the stated limits rose from 19.6 per cent in Q4 of 2011 to 20.5 per cent in Q1 2012. However, the most startling shift was seen in the months leading up to the implementation of the US ECA. As a result of the anticipated enforcement of the largest emission control area to date, the number of samples that showed one or more tested parameters in excess of stated limits rose from 20.5 per cent in Q1 2012 to 23 per cent in Q2. When the physical test data was examined, it was somewhat surprising to note that the increased number of off-specification fuels did not originate from ports within the expected control area, but from those ports supporting trade routes into the new ECA. Fuels that demonstrated issues relating to density, viscosity and, unsurprisingly, sulphur content, accounted for a high proportion of the increased off-specs. However, increased instances of high levels of cat fines and stability-related problems were also witnessed. During the course of the year, cases of chemical contamination of both residual and distillate fuels were also seen, highlighting the presence of familiar offenders such as polymers and strong acids. However, in addition to those more familiar contaminants, several cases were witnessed where fuels had been contaminated with chlorinated compounds. Three separate instances of high level contamination with compounds such as trichloromethane and carbon tetrachloride were also seen. it would be very naive to suggest that such quality issues will not continue to be seen in 2013 due to the lack of legislative reform. pressures to meet existing guidelines still remain, and this will in turn maintain the high demand for compliant fuel. it would also be fair to say that further steps will need to be taken in the coming 12 months by owners and operators in preparation for the next round of legislative changes in 2015. However, i do recall making that very same prediction at this time last year, which just goes to show that a crystal ball would prove to be invaluable.
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Singapore Premium Bunkering Hub
Searights Maritime Services Pte Ltd Certificate of Accreditation: MPA/AS 04 001 80 Marine Parade Road #16-05/06/07/08 Parkway Parade Singapore 449269 Searights Ad Jan 2013.indd 1 WB Spring 2013 book.indb 40
Tel: +65 6344 1108 Fax: +65 6344 1128 email: bunkers@searights.com.sg www.searights.com.sg 22/1/13 4:12 PM 05/02/2013 10:34
tEStINg
New rules cause uncertainty
As DnVpS’s gunnar kjeldsen notes, the industry is waiting to see how new regulations will be implemented
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he European Commission recently enforced Directive 2012/33/EU, which is an amendment to Directive 1999/32/EC, and the later amendment 2005/33/ EC with regard to the sulphur content of marine fuels. The amended Directive now has time frames and sulphur limits similar to those in the Emission Control Areas (ECAs) and the global sulphur limits set by the international Maritime Organization (iMO). However, the European Commission will not delay the enforcement of the 0.50% sulphur limit in their territorial seas, exclusive economic zones and pollution control zones (200 nm from Member States shoreline) to 2025, even if iMO decides to do so. MARPOl sampling
Sampling and analysis of marine fuels have also been changed in the latest Directive to align with the guidelines from iMO. This means that MArpOL sampling should be taken at the receiving vessel’s inlet manifold, in accordance with iMO’s resolution MEpC 182(59), and if it is to be tested for compliance, it should follow the verification procedure set forth by the revised MArpOL Annex Vi. The Directive, however, continues to recognise the sampling and analysis of tank samples as well as sealed commercial bunker samples on board ships. From past experience with member states’ inspections, samples are usually taken from the service tank or as close to the engine(s) inlet as possible. There had been little to no interest in testing
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the MArpOL sample since the previous directives did not clearly recognise this sample for verification. it will be interesting to see which sample the member states will now opt to verify for sulphur compliance since a third option (the MArpOL sample) is now available. it may be that many port states will continue to select tank samples for sulphur compliance with regard to the ECA limits in order to verify proper change-over procedures and maintenance and select the MArpOL sample of verification with regard to the global limit. Over the limit
if this turns out to be the practice, then a non-compliant tank sample should also trigger the testing of the MArpOL sample in order to determine why the tank sample was over the limit. Unlike current practice by many port State Controls in Europe, the amended directive should now push verification on any sample to be performed in a fully accredited iSO 17025 or equivalent standard laboratory, and if the final test result is 0.01% or higher than the limits set forth in the Directive, it will mean that the fuel is non-compliant. Gunnar.Kjeldsen is Regional Manager, Fujairah, DNV Petroleum Services. Email: Gunnar.Kjeldsen@dnv.com
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It
Filling a niche
As David Hughes reports, iT companies are competing to satisfy the specialist requirements of the bunker industry
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nformation technology is, of course, almost everywhere in the modern shipping industry, from the engine room to the bridge, from the personnel office to the chartering department. increasingly, however, software providers are meeting the very specific needs of the bunker industry. Here we profile three new products.
BtS banks on bunker trading ecosystem
Singapore-based BTS pte plans to create a bunker trading ecosystem. The company says this will be a neutral, secured and trusted iT platform to facilitate the trading of bunkers between players in the bunkering trade. it aims to bring all parties in the shipping and bunkering industries together in a single online marketplace. The data generated by the platform will provide participants with true prices executable throughout the day. According to BTS, the resulting transactional data will be an important source of information for the various market participants, as well as industry researchers. it will also enable the market to create a derivative futures price, which will, in turn, bring stability to bunker markets and lower the cost of doing bunkering business. The electronic communication capabilities of the Ecosystem will improve the sale, procurement and record-keeping practices of its users, while a set of core back end functions will provide participants with capabilities to effectively leverage on information that is available from the trading platform. BTS provides innovative iT solutions for the maritime and bunker industry, with a strong focus on bunker suppliers/traders and craft operators. The company’s flagship and award-winning intelligent Bunker Management System (iBMS) solution is adopted by many bunker suppliers and traders globally. The company also provides customised solutions for ship supply and bunker fuel testing companies. it has also been chosen as the preferred partner of the largest bunkering port in the world to develop Bunkernet – a network platform linking all stakeholders within the bunker supply chain to enable a seamless bunkering experience for ships calling at the port of Singapore.
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SEEMP delivers fuel cost savings
Finnish shipping company Bore says its trial of electronic software has verified a 5.8% reduction in fuel consumption. The news comes days before the international Maritime Organization’s Ship Energy Efficiency Management plan regulations come into force. From 1 January, all shipowners and operators must identify and develop ship-specific energy efficiency measures for their vessels. Bore’s 89-day sea trial of the nApA for Operations SEEMp software, conducted between April and July 2012 along routes between Cadiz and naples and Cadiz and pauillac, delivered calculated annual fuel savings of 320 tonnes, equivalent to US$210,000 in fuel savings per annum on the Bore Sea, claimed to be “one of the most efficient ro-ro vessels in its class”. A statement says that, through advanced normalisation calculations the difference in average speed, the effect of wind, and constant rpm mode to combinator mode were factored out of this result. This process showed that speed optimisation alone created a 5% reduction in fuel consumption, with potential from trim optimisation providing another 0.8%. Through this normalisation process and data analysis, nApA could also verify substantial additional saving of approximately 10% from WE Tech Solutions’ variable frequency drive shaft generator (VFD Sg) application. Voyage reporting and electronic logbook systems were installed for a 63-day reference phase to establish the benchmark performance of the vessel before efficiency management processes were enacted for the trial. Fuel consumption and efficiency data continued to be transmitted to shore every 10 minutes throughout the second stage of the study to give an accurate foundation for analysis. nApA speed optimiser software was implemented to enable efficiency improvements to the vessel’s speed profile, reducing the standard deviation of the speed profile from 1.6kn to 0.7kn. This measure alone contributed significantly to the fuel savings. Jörgen Mansnerus, Vp Marine Management, Bore, says: “We are exceptionally pleased with the outcome of this trial of nApA for Operations SEEMp systems. We challenged nApA to prove that an
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electronic SEEMp could provide measurable and tangible fuel and cost savings to our fleet and this study does just that. “During the benchmarking period, we saw that the business-as-usual annual consumption of M/V Bore Sea would be around 5600 tonnes. given the 5.8% savings afforded by implementing two elements of the nApA package, we should see significant financial savings.” ABS releases environmental management module
ABS President and CEO Christopher J Wiernicki
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US-based classification society American Bureau of Shipping (ABS) has released its new Energy and Environmental Manager module, which is aimed at supporting regulatory compliance and operational efficiency ABS president and CEO Christopher J Wiernicki says: “One of the biggest challenges facing the marine and offshore industries is how to successfully meet changing environmental regulatory requirements. ABS is systematically combining traditional class services with innovative products and services to support compliance efforts and improve vessel performance.” According to ABS, a key objective of the Energy and Environmental Manager is to help owners and operators realise more environmentally sound voyage management by tracking and recording key voyage-related events, including fuel and lube oil consumption, fuel oil switching, cargo information and ballast activities. By simplifying and centralising real-time environmental and energy data collection, this comprehensive module is intended to make it easy to track, trend, and report the information required for various regulation requirements, including Ship Energy Efficiency Management plans, ballast water management and MArpOL Vi (fuel switching). The Energy and Environmental Manager also trends performance data at a ship and fleet level, allowing users to maximise operational efficiencies. The value of the new module is enhanced, ABS says, by the Trim Optimisation tool, which adds trim and draft optimisation for improved fuel savings. it performs multiple analyses to obtain the most optimised ballast configuration to achieve minimum hull resistance. Using these two tools, vessel operators are expected to be able to achieve better performance while reducing costs through streamlined data collection and analysis, more accurate reporting, demonstrable evidence of regulatory compliance and more efficient and environmentally sound operations.
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RISk MANAgEMENt
Chance encounters
Sandra Speares takes a look at uncertain times in the risk management scene
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anaging risk in the current environment is unlikely to be easy in a period of rising prices, poor or non-existent profits for owners and uncertainties surrounding the regulatory regime in centres like Europe and north America. Fuel prices have been rising steadily and show no signs of falling back, while regulatory pressures – not to mention financial pressure on companies – have ensured that they will try to make themselves as risk-averse as possible, perhaps to their disadvantage when trading opportunities appear. Disputes can erupt in terms of bunker deliveries, as has been witnessed by the recent filing of a case in the South District of new York involving Bp and the Economou group. “With impending regulations and the continued geopolitical turbulence around the world, we can anticipate that fuel prices will remain high for the foreseeable future,” says Søren Christian Meyer, global Sales Director, OW Bunker. “in conjunction with this, as environmental regulations drive further diversity in the choice of fuel oil, it is vital that shipowners and operators implement a fuel procurement strategy that meets the demands and compliancy requirements of their operations. “With liquidity increasingly tight within the shipping industry, it is critical that shipowners and operators look to implement a risk management strategy that provides product assurance and locks in costs, as well as maximises cash flow and their levels of profitability. “naturally, the strategy that customers adopt depends on their appetite for risk. given the period of austerity that we are in, owners and operators might prefer to take a more conservative approach. This would involve using a variety of hedging instruments as part of an overall risk management strategy. “Most important – and one area where many companies often get it wrong – is hedging on a month-to-month basis, which has been a catalyst of the uncertainty in the financial markets over the past few years. The reality is that this short-term approach has led to companies speculating, rather than hedging; they don’t offset their risk exposure, but rather guess which way the market might head,” he continues.
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Søren Christian Meyer
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“in conjunction with a more prudent approach, we would advise customers to consider physical hedging, where products are bought on a forward basis. not only does this enable the customer to fix and lock in the price of fuel oil in designated ports, it also provides assurance over product availability. This would be particularly prudent if fixed on a two-year contract with the 2015 sulphur regulations in mind. “To deliver a successful risk management strategy, it is critical that there is a close relationship between shipowners and operators and their fuel supplier. They must have an in-depth knowledge and understanding of their customer’s business and operations, and a mutual focus on finding ways to improve both operational and financial efficiencies. Critically, any strategy should not act in isolation from the rest of the business, but integrated into the overall infrastructure, including corporate and financial processes, as well as day-to-day operations,” Meyer concludes. Playing it safe
“2012 was a year of extremely fluctuating oil, from $128 in February to $88 in June. The present outlook does not give me any reason to believe that oil prices will be less volatile this year. if you wish to be certain your budget is not affected by the fluctuations, i recommend that you lock away your exposure, for instance with a customised hedging solution. play it safe!” was the comment from Hans Erik Christensen, managing director of global risk Management, which has recently released its forecasts for 2013. global risk Management’s annual outlook report predicts a “slight increase in oil prices over the next year. increasing emerging markets demand is more than offsetting the decrease in OECD demand. The big financial issues of last quarter was the ‘fiscal cliff’ in the US – putting the impact into perspective, it’s probably more of a big pothole than a cliff.” geopolitical risk remains a major factor for the coming year, notably as far as Syria and iran are concerned. According to global risk Management’s annual report, the iranian nuclear issue will “remain the biggest wild card for oil prices in 2013”. iran carried out naval exercises in the Straits of Hormuz at the end of the year and has threatened to close the Straits in response to increasingly tight sanctions being imposed on the country’s oil exports. The iranians have denied reports that the government was potentially planning to block the Straits with a giant oil spill, but the sanctions in response to the nuclear development issue remain paramount, not least because of the potential for israeli military action against iran. While Saudi Arabia and the United Arab Emirates have been developing overland pipelines in order to bypass using the Straits to export oil supplies, any closure would have a major impact on Asian importers of oil, notably Japan, China and india. According to global risk Management: “The israeli talks of a preemptive strike seem to have been muted for the time being, but after the israeli election on 22 January, we expect the rhetoric to sharpen again. We note that during the rocket attacks from gaza, and israeli air strike, a single comment from a Hamas spokesperson made Brent instantly jump $2.” As far as Syria is concerned, although the country is not a major oil exporter, the report notes that there could be considerable ramifications if unrest spreads to surrounding countries. “neutral to slightly bullish” is how global risk Management describes the geopolitical outlook. Reliable measures
Drewry Shipping Consultants assessment was that “rising Lng prices, almost stagnant liquefaction capacity amid expanding regasification capacity and development of Lng export framework in the
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US could prove to be the game changers for the Lng industry. in its report on the Lng market, the consultants say: “ it is high time that alternative pricing mechanisms are devised to reflect the Lng supply-demand balance rather than being indexed to proxies like Brent Crude or JCC. However, no such reliable measure has yet been developed. rising project costs in the Asia-pacific region, robust demand from emerging economies, along with Japan and South Korea, and tight supply conditions are some of the reasons for firm Lng prices. “ in the pacific Basin, the rising cost of production in Australia could result in delays in commissioning planned projects, Drewry said. “To add to the supply concerns, indonesia and Malaysia are now developing regasification terminals to meet their domestic demand. Egypt is planning to import gas from Algeria to meet Lng export obligations. While environmental concerns call for enhanced gas use by all economies, these developments on the supply front threaten to cause a permanent upward shift in Lng prices. “Traditionally viewed as a cheap source of clean energy, will such a development threaten a large-scale substitution by coal, or will emerging economies go slow on adopting gas as a major source of energy? Or will Japan, facing stiff opposition to nuclear power generation from its own people, import more of coal so as to save on costs?” Another area of interest for Lng players could be Lng bunkering, which is gaining importance gradually, Drewry said. More stringent air emission requirements for seagoing vessels are posing a new set of challenges for ship operators. “Seasonal variations in demand, evolving bunkering requirements, peak gas demand and exploitation of marginalised and scattered gas fields are some of the important reasons why many players are now thinking of developing small and mid-scale Lng terminals,” it said. “Advances in process technology, standardised designs, manufacturing efficiencies in liquefaction, transport and regasification are all reducing the costs of small- and mid-scale Lng plants and making their development more economical for gas delivery in small and remotely located areas lacking infrastructure. We can expect a gradual increase in the numbers of small- and medium-scale Lng plants and terminals in the medium- to long-term. “
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gEOgRAPHICAl fOCuS: NORtH EuROPE
Sulphur fuels serious worries
Sandra Speares takes a look at the north European bunkering scene
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s the application of the 0.1% sulphur content deadline of 2015 moves ever closer, the EU Transport Council has recently announced that its working group will look at solutions to the problems created by the application of the new content requirements for marine fuels. Aside from the issue of modal shift, there have also been worries expressed by the industry that fuel quality could be compromised as bunker suppliers seek to meet the new requirements. The European Community Association of Ship Brokers and Agents was one organisation to write to the Commission saying that the introduction of a 0.1% sulphur cap in emission control areas would lead to higher emissions in Europe as companies turned to the roads as an easier and cheaper alternative. The decision of the EU Transport Council has been welcomed by the industry. According to Alfons guinier, Secretary general of the European Community Shipowners’ Associations, “ECSA welcomes the decision of the Transport Council to have, eventually, a serious discussion about the consequences of the application of 0.1% in the SECAs as from 2015. While the industry supports global rules on reducing sulphur emissions of shipping, no serious impact assessment has been made on this iMO decision.” Various studies by governments and universities confirmed the risk of a modal shift from transport by sea to transport by road, which could be more than 30% on some routes according to ECSA. “in detailed analysis by the shipping industry, serious concerns came forward on the timely availability of compliant fuel. it has also been assessed that the operational solutions to comply – notably scrubbers and the use of Lng as alternative fuel – will not be ready for commercial use by 2015. it has also become clear that the toolbox of mitigation measures avoiding the modal shift from sea to land is far from sufficient.” Fuel quality, most notably as far as cutter stock is concerned, has
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become an issue as suppliers seek to find the most cost-effective solutions to produce low sulphur fuels in the quantities necessary to feed the shipping industry. Whether Lng can be developed as an alternative fuel source in time to alleviate the move to cleaner fuels is a moot point. Lloyd’s register recently released a study on the future demand for Lng. “We needed to develop an approach that would help us to get a clear sense of what Lng-as-fuel might mean for our clients,” said Hector Sewell, head of marine business development for Lr, when the release was announced. The study found that widespread adoption of Lng-as-fuel will be driven by price, the growth of alternative fuels and the degree of global collaboration. its base-case scenario predicted that, by 2025, there could be 653 deep-sea, Lng-fuelled ships in service, consuming 24 million tonnes of Lng annually. These ships are most likely to be containerships, cruise vessels or oil tankers. When the study modelled relatively cheap Lng – for example, priced at 25% lower than current market prices – the projected number of Lng-fuelled ships tripled to approximately 1,960 units in 2025. if the cost of Lng increased 25% against current prices, hardly any new Lng-powered tonnage was projected to hit the water. “Lng is unlikely to simply replace heavy fuel oil,” Sewell explained. “We will see specific niches – such as in norway – embrace Lng in small-scale applications. Adoption in the deep-sea trades is a different affair – there are different drivers and we are also likely to see other fuels and technologies emerge as options.” “Despite the excitement [about Lng as fuel], there has yet to be an order for deep-sea, large-engined, Lng-fuelled ships,” Sewell said. “The most likely first movers could be the big containership operators, which are able to bunker at two ports at either end of a liner trade route, such as in rotterdam and Singapore or Shanghai. This might take years, or it may happen tomorrow.”
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Latifat Ajala, Lloyd’s register’s Senior Market Analyst, added that price would be a key issue “but it’s going to be all about collaboration. There has to be a group of stakeholders who want it to happen. political will and commercial ambition combined with environmental objectives and regulations have driven the modest take-up so far. There is no global market for Lng bunkers, so local or regional initiatives, investment, environmental and fiscal policy all have a part to play. Shipowners who are serious about using Lng as bunker fuel may need to cut their own supply deals and lock in prices for years ahead. it’s going to be really interesting to see what happens.” Meanwhile, Oil & gas iQ’s recent report on trends in Lng bunkering suggests that the lack of Lng infrastructure as one of the most prominent barriers facing its development, with economic feasibility in second place. The report suggests that 42% of new build dry bulk carriers are expected to be Lng-fuelled in 2015, with Singapore, north West Europe and the persian gulf have the highest current bunkering demand. Commenting on the revised EU sulphur directive approved in november, now in force, independent tanker owners organisation inTErTAnKO highlighted the problems of distortion of competition between north and South. During the Council meeting, the European Commission put forward six statements to clarify its position on the changes introduced to the text during the first reading negotiations between the Council and the parliament, with regard to: • port reception Facilities: the Commission reiterates its right on initiative on the inclusion of waste from exhaust gas cleaning systems (scrubbers) under the principle of no special fee • 2013 Air Quality review: the Commission is assessing the costs and benefits of additional measures to reduce air pollution from ships, including the impacts of applying a maximum fuel sulphur standard of 0.1% in territorial waters • new SECAs: the Commission clarifies that new SECAs designated through iMO should not automatically become EU law without it going through the Ordinary Legislative procedure (i.e. negotiations between parliament and Council) Other statements refer to the use of implementing acts, inter alia for the frequency and definition of sampling. Although these statements are not legally binding, they provide a good indication as regards the direction the Commission will take on the implementation of the revised Directive.”
Aviation uncertainty
The UK government has said that it will defer a decision on whether to include international aviation and shipping emissions in carbon budgets until the setting of the fifth carbon budget in 2016, by which point there should be a lot more clarity on how aviation emissions will be tackled at both a European Union and a global level. recently, the European Commission proposed that it would suspend international aspects of the aviation EU Emissions Trading Scheme in order that progress could be made by the international Civil Aviation Organization in developing a global agreement on the treatment of aviation emissions. Secretary of State for Energy and Climate Change Edward Davey said: “given the uncertainty of what is happening at the EU and global level in managing aviation emissions, we think it sensible to defer our decision on the inclusion of aviation and shipping emissions in the UK’s carbon budgets. “This government is fully committed to meeting the 2050 target and this is consistent with the UK’s contribution to the international goal of limiting global temperature rises due to climate change to 2°C”. “The government recognises the importance of treating emissions from international aviation and shipping in the same way as emissions from other sectors, in order to reach our long-term climate goals.” Aegean adds falmouth
Aegean Marine petroleum has been granted permission by the Falmouth Harbour Commissioners to provide bunker deliveries at the port of Falmouth. The port of Falmouth expands Aegean’s strategic presence in the UK as it currently provides bunkering operations in portland Harbour and further strengthens the Company’s position as a leading supplier of marine fuels throughout north West Europe (nWE). All grades of marine Fuel Oil and MgO will be available, meeting the latest iSO specifications. The bunkering deliveries will be conducted by four tankers, the Sara, Syros, paxoi and naxos. Aegean has also announced that it has signed a definitive agreement with Meroil – a Barcelona-based oil and energy logistics company that operates the largest Spanish coastline terminal for petroleum products in the port of Barcelona – to secure onshore fuel oil storage capacity in that terminal. in addition, the company has announced plans to establish a new service centre and commence physical supply operations in Barcelona by the end of the first quarter of 2013. The port of Barcelona serves as a key transportation hub along major seaborne trade routes, totalling approximately 10,000 transits per year and generating approximately 1.2 million tonnes of annual marine fuel sales volumes. The port, which also benefits from extensive cruise passenger travel, is currently undergoing a modernisation and expansion plan headed by the Barcelona port Authority, which is expected to substantially increase the port’s capacity upon its completion in 2014.
Port of Rotterdam could be among the first to offer LNG bunkers
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The 34th International Bunker Conference 24-26 April 2013, Gothenburg, Sweden
Compliance – smooth sailing or costly confusion? IBC, the world’s longest-running and most respected bunker conference, will continue down the road set out the past years. Using all the experience of the previous 33 conferences, with more than 6500 people from 23 countries having previously participated,
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IBC 2013 is the place to be, to meet and network with old and new bunker friends. The headline for IBC 2013 is “Compliance – smooth sailing or costly confusion?“ and these are some of the topics we will cover: • Bunker purchase • Enforcement • Risk management • Future solutions
STATEMENTS FROM PARTICIPANTS AT IBC 2012: • Excellent presentations and very nice social events with many opportunities for experience exchanges! • A strong program and attendance list. • Many interesting topics and good networking possibilities.
www.bunkerconference.com
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gEOgRAPHICAl fOCuS: INDIA
Finding a voice
india’s bunkering industry is in the throes of setting up a trade association
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uring 2012, the players in india’s bunker industry have been moving towards setting up a trade association against a background of increasing sales and optimism, although many obstacles need to be overcome if the country’s potential as a bunker supplier is to be realised. The head of international Bunkering Middle East DMCC’s indian operation, Virendra Mishra, has been particularly vocal on this issue and quoted widely in the shipping media. According to Captain Mishra, india has the potential to be a regional bunkering hub and cites expert opinion that the country could sell between eight and 10 million tonnes of bunkers a year. in contrast to these projections, the actual volume sold is estimated to be under two million tonnes. in common with many commentators, Captain Mishra points to the country’s tax structure, which varies by state, and its customs regulations as major barriers to expanding the bunkering business and one reason for relatively high prices compared to major competitors such as Singapore and Fujairah. Mishra complains that the tax structure not only varies in different states, but also on different products. He argues for a uniform policy exempting bonded bunkers from VAT in all of india’s states. A number of states, including Maharashtra, goa and Kerala, have already granted such exemptions. Mishra says that customs procedures are time consuming and holidays vary from state to state. According to Mishra, the need to speak with one voice on these issues makes a trade association a necessity. Joint venture supplier Chemoil Adani ‘s chief executive officer Basheer Ahmed has been quoted making similar points. He said that the company had expected demand to be higher when it started operations, but the VAT issue was holding back sales. He added: “Assuming that there is no VAT, or with 1% VAT, the volume could easily begin at three million tonnes and go up to five million tonnes per annum.”
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Despite the problems, however, there were plenty of signs of increased activity around the indian coast during 2012. For example UAE-based Asean international’s chief operating officer, Zain Jamal, told World Bunkering that its indian subsidiary Modest & parsons will be “subject to a considerable progression curve in the years to come”. The company has recently acquired a new, 2011-built, 1,400 dwt, double-hull bunker barge, the Sahir. This takes Modest & parsons’ fleet up to five vessels. Jamal said: “The company now commands its resilient position in the indian bunker market.” Among other developments, a contract should soon be awarded to build an oil jetty and bunkering terminal at Kandla port, near the existing oil jetty no.1 at Old Kandla. The port’s four existing liquid cargo jetties handled 10.2 million tonnes in 2010-2011. New project
Another major project was announced in December by gulf petrochem group which said it had started construction of a stateof-the-art liquid cargo storage terminal at pipavav. The company’s group chief executive, Sanjeev Sisaudia, said: “gulf petrochem’s pipavav Oil Terminal is strategically located in southern gujarat, giving us a logistical advantage and strongly positioning the company to take advantage of india’s abundant northwest markets. This project will accelerate our expansion drive in key Asian markets, while strengthening gulf petrochem’s position as a leading player in the global oil space. We will continue to invest in major projects that will enhance our ability to provide reliable, tailor-made solutions at competitive prices, which will ultimately benefit our clients,” Meanwhile, BgH Exim is reported to have recently completed its largest stem to a single vessel, at Kandla, gujarat state. The company delivered 3,000 tonnes 380 cSt to the bulk carrier Cape Supplier. The 550 tonnes capacity barge used by BgH Exim had to make six trips from terminal to vessel to make the delivery
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gEOgRAPHICAl fOCuS: PAkIStAN
Going for growth
pakistan’s bunkering industry is growing as the expansion of the country’s ports continues
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ast year, it was expected that there would be increased volumes of bunkers sold, reflected by increased activity in the country’s bunker sector. There is clearly considerable optimism that the bunker industry is set for significant growth. Bunker Trader Cristy Ortiz-Malik of major supplier Orion Bunkers told World Bunkering that increased political problems and rising fuel prices contributed to making 2012 a “tough year for bunker industry in pakistan”. But she added that, in early 2013, Orion could see positive indications that the shipping and bunkering industries were, as before 2010, “growing day by day”. new customers were coming in and those who had been quiet for a long time due to reduced requirements for bunkers in pakistan were returning.” Healthy competition
Ortiz-Malik said that there was now healthy competition among the players in the market. She said that the company was hoping that these positive signs would continue for the near future and that pakistan’s bunker industry would become busy again as political conditions improved. Karachi port continues to be the main focus of bunkering activity. it is a natural harbour with a deep channel that can take tankers up to 75,000 dwt at three liquid cargo berths. Karachi also has two container terminals and 30 dry cargo berths. The country’s second port, Bin Qasim, is 28 nautical miles to the south-east of Karachi city. it is well placed on the shipping lanes to
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the gulf and can take vessels with drafts of up to 11 metres. in mid-2012, Orion’s director, Adil Sher, said that the volumes delivered every month in 2011 were running at about 12,000 tonnes of 180cst and at some 1,000 tonnes of distillate. Those figures were about 20 to 30% down on the previous year. Sher put Orion’s share of the market at almost 55%. Orion Bunkers is the only supplier with its own storage tanks for iFO, MgO and MDO. it operates a fleet of nine self-propelled barges, which can carry all grades. it also has a fleet of tanker trucks for supplying at the berth. Increasing optimism
in another sign of increased optimism, Zak Bunkers announced in December that it had added a 550-tonne capacity tanker, the Al Ahmed V, to its fleet. The company’s general manager M Salman Kalia was quoted as saying: “The addition of the new bunker barge in our fleet will strengthen our bunker operations at pakistani ports.” Meanwhile Shaukat Marine Services was established last year and, according to press reports, is headed by Hammad Ali Mirza, who has been in the bunker business since 1988. it was reported that the Karachi-based firm had appointed Shakil Ahmed as manager of trading and operations. The company operates four barges, two of which are owned. it has one barge under construction and plans to build a further vessel. Karachi-based Ocean Bunkers was also reported to be expanding its fleet to six vessels, with two newbuildings.
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gEOgRAPHICAl fOCuS: uAE
Rising in the east Despite a flat world shipping market, the emphasis is still on growth at the UAE’s bunkering ports
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hile figures are hard to come by, significant players in the Fujairah market have been suggesting that volumes may have dipped last year. Certainly, competition appears to have got even fiercer, between both suppliers and ports in the gulf and the indian Ocean. Bunker trader Hassan Allami of Al Arabia Bunkering Company told World Bunkering: “i see 2013 to be another competitive year in the UAE bunker market, especially at Fujairah as major storage projects are completed. Hopefully, with economic stabilisation globally and relative calm on the geopolitical front, volumes can increase in 2013. However, i do believe that suppliers/traders with a good record, good performance and sound services to their clients will always be in demand.” He added: “it’s been a fast start to 2013 with fairly healthy volumes at Fujairah and Khorfakkan. We have recently added an additional barge to our fleet, Clarity, with a capacity of 7,000 tonnes of fuel oil and 2,000 tonnes of MgO.” Chief Operating Officer of UAEbased Asean international, Zain Jamal, commented on the current market, saying: “Last quarter, the UAE experienced a fairly stable market demand. The market still shows evidence of significant movement of intermediate fuel oil (iFO) 380 cSt and marine gas oil (MgO) as usual. However, there has been a change in the dynamics of the market recently. Two main altering factors are the increased saturation
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within the UAE bunker market and the US/EU sanctions against petroleum products imported from Syria and iran.” He added: “in 2012, many new participants to local competition have surfaced: some from humble beginnings trying to work their way up from a small client base and some of big-named trading houses trying to rub shoulders with the locally established. The belief is that there is enough business for everyone to share, but definitely more competition. “Asean believes the customers and purchasers must be well versed with what they are buying, given the distortion in standards created now by several market players. To avoid low-quality products and services, buyers must know whom they are buying from and what they are buying, before they are surprised by the lack thereof.”
Construction work is underway to expand Jebel Ali’s Terminal 2
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Jamal offered to he following advice to shipowners: “Know your supplier and their source and link quoted prices to the quality of products and services because you get what you pay for.” He told World Bunkering that Asean international remains a strong market player in the UAE, strengthening its business practices and inducing sustainable growth within various facets of its operations. He noted: “Steady growth has been its course and a growing workforce its engine.” He added: “Last year was a year of further development for Asean, increasing the size of its trading team with two new traders, Manish Soni and Farhan Hudda. Furthermore, new administration and accounting staff have also been brought on board. To accommodate a bigger team, Asean has moved into brand new office premises mid last year, with a brand new, fresh and contemporary look.” The company has recently expanded into East Africa and has also ordered an additional tanker, which will allow for offshore deliveries for iFO and MgO of larger quantities at much faster pumping rates. Looking ahead, Jamal said: “in 2013, among many goals, we hope to maximise the yields on our current and future investments. Committed to the mutual benefits of our stakeholders, we aim to grow organically with a strict adherence to our strategic goals for each of our business units.” Meanwhile, at the red Sea and gulf Bunkering Conference (rescon) in 2012, Fujairah’s harbour master Tamer Masoud said that Fujairah was seeing a boom in demand from the Middle East and Asia. Masoud said: “We’re working to develop our infrastructure parallel to the oil storage growth.” He noted that major storage projects by Aegean Maritime, gulf petroChem and EnOC were close to completion. He said: “We’re offering a one-stop shop in terms of maritime services, plus the strategic location makes an important difference.” One major project completed last year was the Abu Dhabi Crude Oil pipeline, running to Fujairah, which became operational in July. The pipeline can deliver up to 1.5 million barrels of crude oil a day. The project is also expected boost Fujairah’s bunker market, with large crude oil carriers taking on stems prior to loading. And in november last year, it was reported india’s iOT infrastructure and Energy Services had secured a US$82m contract to build an oil storage facility in Fujairah for UAE-based trading group primestar Energy and india-based Leasing & Financial Services (iL&FS). The terminal will have a storage capacity of 600,000 cubic metres and is expected to be commissioned by mid-2014. Meanwhile, netherlands-based Vopak said in statement sent to platts in December that its Vopak Horizon Fujairah oil product storage and blending terminal at Fujairah was not being used to handle iranian oil. Vopak said: “We would like to make it very clear that we don’t store any product with certificate of origin iran at our terminal in Fujairah in the UAE, nor in any other terminal in our global network. “Vopak follows strictly the rules and sanctions imposed to iran in the countries that we operate in. We adhere to the US, EU and Un rules and sanctions.” Vopak’s statement follows a platts’ report in early november that iran was looking to bypass US and EU sanctions by exporting large amounts of fuel oil. Vopak has a third share in the Vopak Horizon Fujairah terminal, with the Fujairah government and Kuwait’s independent petroleum group owning the balance. The terminal has a capacity of 2.13m cu cm in 68 tanks and can handle oil products at six berths and one single point mooring system.
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GAC achieves ISO standard Management quality certification recognises best management practices
Dubai-based gAC Bunker Fuels has achieved iSO 9001:2008 Management System Standard certification, one of only a few such companies within the bunker industry. The iSO 9001:2008 certificate awarded by Det norske Veritas (DnV) recognises gAC Bunker Fuels’ best management practices in the trading and brokerage of marine fuels and lubricants across its global operational sites. it demonstrates the company’s full compliance with the requirements of this international best practice standard, which considers a range of measures, including management responsibility, resource management, product quality and the improvement of quality management systems across the organisation. nicholas Browne, global Director of gAC Bunker Fuels, says: “Quality assurance has been the guiding principle behind gAC Bunker Fuels’ growth. Our iSO 9001 certification gives customers further reason to rest assured of top service, quality standards and the highest grades of marine fuels and lubricants when they deal with us.” “As one of the few bunker companies to achieve this global benchmark, gAC Bunker Fuels underlines its continuing commitment to the pursuit of world-class standards and ongoing service improvement to help our customers to meet their bunker fuel needs and deliver their business strategies.” part of global shipping, marine and logistics services provider, gAC, the company trades and supplies all grades of iFO, MgO, MDO and lubricants worldwide in partnership with suppliers.
Nicholas Browne, Global Director of GAC Bunker Fuels Limited
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gEOgRAPHICAl fOCuS: uAE gEOgRAPHICAl fOCuS:
Land of the giants Dubai’s Jebel Ali port aims to be gulf hub for mega containerships
W
hile Fujairah is the UAE’s largest bunkering port Jebel Ali, in Dubai, is busy reinforcing its position as a regional container hub and bunkering port for the new generation of mega containerships. in January, the largest man-made port in the world handled the maiden call of the world’s largest containership, the 16,020 CMA CgM Marco polo. The 16,020 TEU was welcomed by Mohammed Al Muallem, Senior Vice president and Managing Director, Dp World, UAE region, who said: “We are delighted to welcome the Marco polo to Jebel Ali. The vessel’s arrival heralds a new era of mega container liners. We stand ready to serve these giants and the even larger vessels currently under construction. Already, Jebel Ali port is handling an average per week of three ultra-large container ships (ULCS) with a capacity of 14,000 TEU and above and we anticipate that number will increase steadily in coming years.” Mohammed Ali Ahmed, Chief Operating Officer, Dp World, UAE region, said: “Jebel Ali port is equipped with a total of 22 berths and 78 cranes to serve containerships of any size currently in existence and on the order book. And we are adding new capacity, including the brand new $850m Container Terminal 3, set to open in 2014. The developments mean Jebel Ali port will be able to handle 10 of the next generation 18,000 TEU mega vessels at the same time.”
in December last year, in a special ceremony at Jebel Ali, Dp World Chairman HE Sultan Ahmed Bin Sulayem formally witnessed the installation of the last of the 2,752 65-tonne blocks that make up the foundation of the extended quay wall of the 1 million TEU expansion of Jebel Ali Container Terminal 2. The expansion, scheduled to open for business in the second quarter of 2013, extends the quay wall by 400 metres to 3000 metres, allowing the simultaneous handling of six 15000 TEU mega ships. Meanwhile, across the harbour from Terminal 2, work is also well underway on the brand new, state of the art, 4 million TEU capacity Terminal 3, set to open in 2014, taking Jebel Ali’s total capacity to 19 million TEU.
World’s largest containership, CMA CGM Marco Polo berthing at Jebel Ali for the first time
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Offices in Rostov-on-Don, Taganrog, Yeisk and port Kavkaz Nine of own bunkering barges complying with loading and supply regulations Our own storage facilities, giving flexible bunker delivery options Our own terminal at the port Temryuk, providing safe fuel loading on tankers of up to 5000 DWTs Fuel deliveries compliant with MARPOL and SOLAS regulations.
For more information, contact: Rostov-on-Don Tel: +7 (863) 242-44-86 +7 (863) 242-44-87 +7 (863) 242-44-88 E-mail: rostov@ybunker.com Yeisk Tel: +7 (86132) 2-60-64 E-mail:yeisk@ybunker.com Port Kavkaz Tel: + 7 (86148) 4-43-47 E-mail: kavkaz@ybunker.com
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RuSSIAN uPDAtE
Russian survey Olga Bogacheva reports on developments in the
Olga Bogacheva
russian bunker market New bunkering vessel in far East
Rosneft signs gunvor deal
A new bunkering tanker owned by gaspromneft Marine Bunker has started operations in Vladivostok port. “The vessel for unrestricted navigation was built in 2012 and meets all international conventions,” the company’s spokesperson said. The gaspromneft South-East has a cargo capacity of 6,800 tonnes and is intended for operations in primorsky Kray (Vladivostok, nakhodka, Vostochny, Kozmino and posyet) and will fly the russian flag.
Oil trader gunvor and rosneft have signed an export contract for 6 million tonnes of residual fuel oil, worth up to US$4m, at the end of 2012. Oil products will be supplied from the Samara group’s Kuibyshevsky, novokuibyshevsky and Syzransky refineries through Baltic and Black Sea ports. All the stock at Ust-Luga port, located in the Baltic Sea, belongs to gunvor group. The contract runs until november this year. Supporting logistics services, including hiring railway tank wagons, is being provided in co-operation with Transoil.
Russia’s harsh winter will soon be past
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SCADAR was established in Murmansk in 1998. We are physical suppliers at the port of Murmansk and carry out offshore delivery in the Barents sea We are pleased to offer all bunker buyers top quality service and the following range of products, which are well within the ISO8217 quality standards, with full respect for correct sampling procedures. We operate a double hull barge with segregated tanks for carrying multiple fuel grades. We can deliver the products outside port limits for passing vessels with no calling costs, and there are no extra charges for weekends or holidays. Our aim is to benefit our clients with good prices and a reliable service. Scadar Ltd Tel: +7 8152 596 170 Fax: +7 8152 596179 E-mail: scadar@scadar.com Website: www.scadar.com
AMKOIL LTD PA RT O F A M K G R O U P O F C O M PA N I E S
Your bunker supplier in the port of Murmansk and other ports of Murmansk region. We supply: » bunker fuel » all types of petrol » fuel oil M-100 » fuel IFO-380, IFO-180, IFO-30 Amkoil Ltd 86 Podgornaya Street, Office 413, Murmansk, Russia 183038 E-mail: amkoil@mail.ru
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Tel/Fax: 007 (8152) 287828 Tel/Fax: 007 (8152) 287337 Tel/Fax: 007 (8152) 286028
05/02/2013 10:36
A further multi-purpose rescue and salvage ship is on order
River-sea tanker takes to the water
Nevsky to build rescue and salvage ship
Yuliy Makarenkov, the third tanker in the rST-25 project, was launched at Brothers nobel Wharf, rybinsk in november. Built for Moskow river Shipping Company, the rST25 design is a new type of tanker for river-sea navigation, featuring improved environmental protection and a high level of automation. The tanker, designed by Marine Engineering Bureau, is self-propelled and equipped with Class 6 tanks and is intended for the transportation of crude oil and oil products (including petrol) with an unrestricted flash point. The Yuliy Makarenkov is able to carry two different types of products simultaneously. Specific design features include pod drives used both for propulsion and steering, no centreline bulkhead, deep-well pumps and no frame within the cargo tanks. The vessel’s dimensions meet the restrictions of Volga-Don Ship Canal and Volga-Baltic route.
The Directorate of State Contracting Authority for Marine Transport Development programs and nevsky shipbuilding and ship repairing factory (nevsky SSF) have signed a contract for the building of a multipurpose rescue and salvage ship. The multi-purpose rescue and salvage ship with 4 MW propulsion machinery will be the latest vessel built by nevsky SSF to the Marine Engineering Bureau-Design-Spb MpSV07. The first was delivered in October 2012, while the construction of other two vessels is in progress. nevsky SSF is located at Schlusselburg, 40 km from St petersburg on the neva river. Founded in 1913, it is one of the oldest companies in the industry and can build ships of up to 140m long and of up to 3,000 tonnes light displacement. Bronka port receives state boost
Prime minister says ports on path to growth
The capacity of russian ports will grow by 356 million tonnes by the end of 2020, russian prime-minister Dmitry Medvedev told the country’s parliament recently. The government also plans to commission 2,500km of railway, upgrade rolling stock, build and reconstruct about 14,000 km of motorways and repair about 100 airstrips within the same timeframe as part of a major investment in infrastructure. 2012 port throughput set to hit 550 million tonnes
The throughput of russia’s ports last year was expected to reach 550 million. Maxim Sokolov, Minister of Transport, gave the preliminary figure in his speech “Transport infrastructure development as a tool for the stimulation of economic development of russian regions” to the Federation Council. Throughput at sea ports doubled during the past decade, Sokolov said.
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The russian government has reallocated funds from its federal transport system programme for 2010-2015 to Bronka, a multipurpose marine handling terminal (MMHT) near St petersburg. Money previously allocated for the development of Ust-Luga port in Leningrad and for the construction of a deep-water port at Baltiisk in Kaliningrad will now fund the construction of the terminal. A revised estimate of dredging at Ust-Luga has reduced the cost of that project. Meanwhile, the development of a deep-water port at Baltiisk with a projected annual throughput of 65 million tonnes was reassessed as non-viable due to the development of other ports in the Baltic Sea. The first stage of the MMHT project involves dredging to a depth of 11.2 m, construction of a container terminal capable of handling 1.45 million TEU a year and a ro-ro terminal with an annual capacity of 260,000 units. Commersant Daily quoted Alexey
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Bronka port is set for a state-funded boost
Shukletsov, CEO of construction company phoenix – which will carry out the work on the terminal – as saying he was sure that reallocation would provide sufficient funds for the dredging works at Bronka. The second stage of the project involves further dredging at the terminal to achieve a depth of 14.4m, allowing the capacity of the container terminal to increase 1.9 million TEU a year by 2025, when it is expected there will be 850 vessel calls. The construction of Bronka is part of a strategy to develop outports in the St petersburg region and so increase the region’s throughput by 50%. ust-luga expands industrial area
The governor of Leningrad region has allocated 2,500 hectares for rental by the Ust-Luga company for the development of an industrial area adjacent to the port. The intention is that about 50 organisations will set up facilities there by 2030. Major investments are expected from petro-chemical companies. industrial zone development will be a private-public partnership. The russian Federation will provide funds for the construction of infrastructure, including roads, railway lines and gas supplies. State investment is expected to total US$2bn by 2030. Meanwhile, private companies are expected to invest up to US$18bn. Ust-Luga port is becoming more popular with owners due to the shorter time needed to navigate its approach channel. Transit times between European ports and Ust-Luga are up to two days shorter than for trips to St petersburg.
Transit accounts for about 10% of the Far Eastern market. Transit has developed its own production infrastructure. its Vostokbunker storage facility at Slavyanka has a total capacity of 85,000 cu m, which includes 33,000 cu m for heavy oil products. Slavyanka is an ice-free port and Transit’s tank farm can load 2,500 tonnes of residual fuel a day in the summer and 1,900 tonnes in winter, as well as 18,000 tonnes of light fuel all the year round. The terminal is equipped with a 200mm diameter pipeline and has a maximum pumping rate of 800 cu m an hour. Two tankers may be loaded with two types of fuel simultaneously. Berth length is 300m, while depth alongside allows it to take vessels of up to 50,000 dwt. The company has a bunker tanker fleet of four vessels ranging from 455 to 17,725 tonnes and also operates break-bulk ships and bulkers as well as two tugs, the poseidon and Vityaz . transit commences Posyet deliveries
Transit DV group has started supplying bunkers at the anchorage at posyet harbor, primorsky Kray. The anchorage can take vessels of up to 340 m long and the target market is mainly container ships running between China, Japan and South Korea. Transit’s management says it expects high demand for its new service. Meanwhile Transit has taken delivery of the 30,050 dwt bulk carrier Zoloto Kolymy which will be chartered to support government projects in the northern Territories. Along with the Zolotaya Kolyma, the new ship will take coal to the Magadan power station, but may also be required for other projects.
transit DV joins bunkering association
Another large Far Eastern company, Transit DV Trading, has joined the russian Association of Marine and river Bunkering Suppliers. The company, founded in 2002, provides bunkering services, oil products, coal and marine oil supplies to domestic and foreign markets. it operates in the Far East ports of Slavyanka, Vladivostok, nakhodka, Zarubino, Kozmino, Vostochny, Magadan and also the petropavlovsk-Kamchatsky ports.
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Bunker suppliers end year in traditional fashion
The russian Association of Marine and river Suppliers held its traditional end-of-year dinner in December. According to insiders, this is one of the most informal and friendly annual professional event. Among the guests are bunkering professionals from the whole of russia, as well as people from closely related industries.
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Forum Ltd. Bunker trader: Aleksey Miloradov Phone: +7 (812) 449-65-91 Mobile: +7 (921) 757-11-33 E-mail: trade@forumbunkering.ru Yahoo ID: aleksey.miloradov
www.forumbunkering.ru
Physical supplier of LSFO, HSFO and MGO in the port of Saint-Petersburg
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Elena Shatohina, deputy manager of St petersburg branch of Avanguard bank, said: “i attend this event with great pleasure and enjoy the opportunity to meet successful, talented people. i would like to note the enjoyable atmosphere of this dinner, despite the serious and important problems are discussed. Events like this are obviously necessary to share experiences and further implement joint projects. i hope the Association remains as positive, open and creative as it is now.”
• privatisation, nationalisation and other seizure of property
subjected to compensation State and municipal management and ordinance State regulation and licensing of certain business activities public-private partnership Legislative support for small and medium-size businesses Legislative support of employees’ property and democratisation of production administration, including legislation on employee-owned enterprises • Legislation on management and ordinance of federal property located abroad • Legislation on prevention of illegal takeover, protection of property rights and legal interests of owners • Objects of cultural heritage in respect of property administration. • • • • •
Primorsky kray keeps ferry services
The Marine port Administration of primorsky Kray has announced that the number of ferry routes between the mainland and islands will be maintained at current levels. rumours of cutbacks to ferry services circulated in Vladivostok after the bridge across the Eastern Bosporus Strait, which connects the mainland with russkiy island, was built, resulting in fewer passengers using the ferries. The problem was discussed at a special meeting of the port Administration, which decided vessels would continue operations to provide transport construction materials and other cargo. The number of daily services to popov island will also increase. Pella promises new shipyard
Elena Shatohina
New port facilities for Petropavlovsk-kamchatsky.
Construction of a new terminal building has started at petropavlovskKamchatsky and part of the federal government’s Far East and Transbaikal development project. The total cost of the work has been estimated by the Kamchatka government at US$22m. Construction should be completed within two years. petropavlovsk-Kamchatsky port has an important strategic position on the northern Sea route and is crucial for the development of the transport infrastructure development of Kamchatsky Kray. The new terminal will improve the port’s ability to receive cruise ships calling at the peninsula. There will also be a modern departure lounge for passengers and a border checkpoint in the building. reconstruction of petropavlovsk-Kamchatsky port’s berths is also included in the government programme. Vladimir Sergeev joins key Duma committee
Vladimir Sergeev, the Chairman of the russian Association of Marine and river Bunkering Suppliers, has become a member of the russian parliament, the Duma, Committee on property’s expert committee. The expert committee of the Duma Committee on property is responsible for advising on the following issues: • Corporate legislation • Legislation guiding self-regulation of businesses and professional activities • Mortgages • Bankruptcy and financial restructuring
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pella Leningrad Ship Building Yard celebrated its 20th anniversary by announcing the construction of a new shipyard. ilia Vaisman, Deputy general Director for Development, announced that the company intends to build a new production site by 2014. The new shipbuilding complex will in Saperny, in the Kirovsky district of Leningrad region. The yard is expected to be capable of building six tug or other vessels of up to 100m a year. The company’s annual sales are expected to reach r14bn once the new facilities are in operation. in total, about r3bn will be invested in the project, of which about 80% will be covered by loans, according to Vaisman. Several large banks have committed to allocating loans for this project, wile the rest of the investment will come from the company’s resources. pella’s net profit increased 240% to r812.4m in 2011. The company is one of the leaders in tug builders in russia, with up to 14 vessels launched at pella each year. About a third of the vessels are for export. lena Navigation lands new ship
A second rOB07 design tank barge was laid down at Brothers nobel Wharf for the Lena navigation Company in October. The rOB07 design was developed to work within the navigation restrictions in the Lena basin, the Volga-Don Canal and the Volga-Baltic route, with pusher boats’ assistance. MArpOL requirements were also incorporated in the design. The vessels have double hulls and are intended for the transportation of oil products without any flash point restrictions. The Lena navigation Company provides bulk oil and dry cargo transportation services in four russian regions: Sakha, irkutsk, Krasnoyarsk and Chukot. Located at rybinsk, the Brothers nobel Wharf specialises in construction, repairs and modernisation of vessels. The yard can undertake construction of barges, special vessels, sea and river tankers, bulk carriers.
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Vladivostok stevedores merge
State bails out kronshtadtsky Morskoy Zavod
Vladivostok sea port, part of the FESCO Transportation group, has begun the second stage of a reorganisation programme aimed at creating a single stevedoring company. Two of the six companies currently providing trans-shipment services in Vladivostok merged late last year. The decision to create the single stevedoring company was approved by FESCO management in January 2012 and implementation of the project started in the second quarter of 2012. Service divisions were included in the new stevedoring company during the first stage. Stevedoring companies providing services at the Vladivostok’s berths will follow suit during the second stage. The project will result in the establishment of a single legal entity, OAO VMTp, capable of providing complete cargo handling services. The employees of the former companies will become Vladivostok port staff. Currently, the salaries in the new company are the highest in this Far Eastern port. After completion of the merger, OAO VMTp will employ about 2,040 people; 1,500 of this number will be production personnel. reorganisation of OAO VMTp should bring better management, improved efficiency and transparency and the company will be a large taxpayer.
The large russian Ministry of Defence-owned ship repair yard Kronshtadtsky Morskoy Zavod received a $8.5 million bailout in 2012,. The Commersant Daily reported that the money is intended to cover tax debts and charges, plus other outstanding loans, confirmed by the court on 28 April 2012. Kronshtadtsky Morskoy Zavod became bankrupt in 2000 when it failed to complete contracts, signed in 1997, for the repair of two Algerian warships and was unable to pay off its r1bn debt. Anatoliy Beloev, the company’s acting general director, said that he had waited for this grant for several years. The funds will be used to pay off all the debts and remove all attachments, so rehabilitating the company. Corporatisation and transfer of the stock to United Construction Company holding will be the next step in the rehabilitation of the company, Beloev said. He expects this to happen in 2013. Beloev also said that the company had signed contracts with the Ministry of Defence worth r1bn a year. Defence procurement is expected to provide the company opportunity for continuous work in the coming years. The company currently has a r300m contract with gasprom for the repair of steam turbines. This currently accounts for about 30% of the company’s orderbook. Contract negotiations with rosmorport for the repair of two ice-breakers are also underway, Beloev added.
Canberra
Russia
Ohotsk Sakhalin Azov
PetropavlovskKamchatskiy
Vladivostok
Mongolia
Vostochnyy Nakhodka N. Korea S. Korea
China
Primorsk
Sovetskaya Gavan
Japan
Nepal
Bhutan Bangladesh Burma
India
Laos
Hong Kong
Thailand Cambodia Vietnam
Sri Lanka
Philippines
Palau
Brunei Malaysia Singapore Indonesia
Papua New Guinea East Timor
Australia
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05/02/2013 10:36
RuSSIAN uPDAtE
Potential assets
Olga Bogacheva talks to Sergey Boldyrev, president of Transit-DV group about the company’s plans for the future
OB: Everybody agrees that Russian far East is a territory with great potential. How will the shipping industry develop there in the near future?
SB: it depends on what efforts the federal government will make to develop the region. Currently, the Far Eastern fleet is not in peak condition. Existing legislation forces shipowners to register their vessels abroad. The Transit-DV fleet flies the russian flag, but there are a number of obstacles that make cargo operations difficult to perform at the Far Eastern ports, a lot of them caused by customs regulations. OB: Do you want the Russian government to develop a bunkering hub in Primorsky kray? Are there any real pre-conditions for it? Is this region able to compete with the Asian ports?
SB: At the moment, the Far East is not integrated into the Apr due to the long distance of primorsky Kray ports from traditional pacific trade routes, which formed during the Cold War. Up until now, our role has been far from that which should be desired by the country with the longest coast in the region, totalling 38,807 km. Development of the bunkering hub in primorsky Kray is the most sensible way to improve the situation. it may change the traditional Asia pacific region (Apr) bunkering market and prevent competitors emerging in China Sergey Boldyrev and South Korea. it will also stimulate the growth of russian heavy oil prices, help to diversify the economy, reconstruct existing hubs and build a new hub infrastructure. Efficient hub management will draw a significant portion of the Apr bunkering market to russian Far East. OB: What is your vision of the far Eastern bunkering hub?
SB: Today, an average large vessel calling at a Far Eastern port for bunkers only buys 1,000-4,500 tonnes of fuel. The number of vessel calls is expected to grow by 1,800 in 2013, and cargo turnover by 500,000 TEU. That will increase the bunkering market by 3 million
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tonnes. Active promotion of primorsky as a bunkering hub may increase the market volume to 12 million tonnes and the annual turnover of container cargo up to 2 million TEU in 2015. This justifies the proposal for new terminals and will mean an increase in the transit cargo throughput from Asia to Europe. OB: What specifically should be done? What should the government do and what actions should private companies implement?
SB: The first measure to push ahead the hub development is to cancel the Onboard Ship Stores Declaration regulation (no. 01-11/64284 from December 30, 2010 with Amendments from March 2011), issued by the Federal Custom Administration. Doing that would result in the primorsky bunkering market growing by up to 12 million tonnes. State-owned rosneft and gasprom are the major players at the Far Eastern bunkering market, with a total market share of 75%. That means that 75% of profit from implementation of the primorsky hub project will go directly to the state bunkering companies and 100% of profit generated by the growth of the railway traffic will go to the state-owned russian railways and Transneft. OB: What results do you expect from transit DV in 2013? What are your immediate plans?
SB: Last year was rather difficult, but also challenging and rewarding for our company. We significantly developed our bunkering supply operation and implemented our Bunkering at Sea project. Our north charity succeeded in implementing all its programmes. Support was even given to those recipients who were not included in the initial plan. The Vostokbunker terminal won a prestigious award: Oil Terminal-2012. now, we are working hard to create a bunkering hub in Slavyanka port. We hope completing the project will improve the image of russian ports to the rest of the world.
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INNOVAtION
Getting rid of the gas
Ecospec seems to have made a significant breakthrough with its gas removal system
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ingapore-based Ecospec caused something of a sensation in 2009 when it revealed its CSnOx system as the world’s first emissions abatement system capable of removing carbon dioxide from engine emissions. The system is designed to abate three gases in one process that operates in both closed loop and freshwater conditions. Since then, not very much has been heard from the company, although Ecospec signed a memorandum of understanding with Wärtsilä in 2010 and linked up with fellow Singapore company Sembawang Shipyard in 2011. now, however, in what appears to be a significant breakthrough, Ecospec says it has developed a freshwater closed loop CSnOx system, which has been successfully trialled by Canada Steamship Lines (CSL). While the real excitement initially generated by the new system was over its ability to take carbon dioxide out of engine emissions, it appears the recent trials have focused on the system’s removal of sulphur oxides. great Lakes operator CSL installed a CSnOx system on one of its bulk carriers, the Spruceglen. Ecospec says: “The system has been running for hundreds of operating hours in an economy mode with confirmed reductions of sulphur oxides. The system is also capable of reducing carbon dioxide and nitrogen oxides concurrently. Formal performance measurements of these two gases will be carried out during phase ii tests to be done in 2013, once the sodium oxide removal process has been optimised.” Ecospec adds: “it is expected that the operating sodium oxide-only mode will
cater in a cost-efficient manner to the current market conditions and surpass the present international Maritime Organization emission requirements. The Ecospec system in FW closed loop solves the logistics problems associated with chemical handling.” The company’s statement concludes: “To cater to shipowners’ emission reduction goals, different versions of CSnOx have been developed: cSOx, a system primarily to address the sodium oxide issue, but at a carbon neutral position, and cnOx, a system to take care of nitrogen oxide emissions, all at a carbon neutral position. The system onboard the CSL vessel is another confirmation of the viability of such a system and operating in an economy mode is a low-cost solution.”
The CSNOx installation on the Spruceglen is primarily intended to remove sulphur oxides
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05/02/2013 10:36
INNOVAtION
The sky’s the limit
Clean Sky bulk carrier design has approval in priniciple from Lloyd’s register
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loyd’s register (Lr) has given approval in principle to the new Clean Sky bulk carrier design incorporating an Lng-as-fuel system. Cosco, shipowner golden Union and Lr say in a statement that they started the project in June 2011 to investigate the potential to develop a commercially viable bulk carrier design based on an existing Cosco conventional design, but employing gas-powered propulsion systems. The Clean Sky design builds in flexibility by enabling owners to choose dual, or tri-fuel engines able to burn heavy fuel oil (HFO) or diesel, as well as Lng. nick Brown, Lr’s Area general Manager and Marine Manager, greater China, says: “This news moves the industry far beyond the concept stage. A Clean Sky ship could be built next year. We have addressed the technology issues; the approval in principle that we issued today only comes after exhaustive risk investigations into the gas containment, bunkering systems and performance assessment.” Various containment systems and configurations were considered by the project team, but the final choice was for a single, 1,160 m3 type C tank that sits aft on the port side. Lr’s risk methodology for novel technology process “provided a pathway through the complexity of the technical risk assessment”, the classification society says. Cosco Shipyard group’s Head of Engineering, Zhan Shu Ming said: “Cosco has a strong sense of social responsibility. We are innovating to help shipowners meet new iMO emissions and performance
requirements. Society is looking for alternatives to current fuels, which are also rising in price. The increased availability of gas reserves and the emissions benefits are driving interest in Lng as an alternative fuel. “With our depth of experience in building kamsarmax bulk carriers, we are now very well placed to build bulk carriers with the new gas technology. Our development in Lng as an alternative fuel technology will not be only limited to the application to bulk carrier designs, but also for other ship types. The current achievement is only the beginning of our research and development for Lng as an alternative fuel and the COSCO Shipyard group, as a pioneer in this new technology, is committed to even more in-depth research in the future.” golden Union added: “The particularly tough environmental requirements mean vessels will have to comply with the international Maritime Organisation’s Tier iii regulations by 2016 and this opens up demand for new ship propulsion solutions incorporating cost effective technologies. This could trigger a substantial shift towards natural gas-powered vessels; and in gas mode dual fuel engines already comply with the iMO’s Tier iii requirements. “Using Lng may be the ideal solution for meeting increased environmental performance without losing competitiveness. This design offers significant reductions in sodium oxide, nitrogen oxide and particulate – as well as carbon dioxide – emissions by simply using cleaner Lng instead of employing costly and complex cleaning systems that do not always work.”
The Clean Sky bulk carrier design is intended to increase environmental preformance without losing competitiveness
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INNOVAtION
The age of Aquarius
Eco Marine power is harnessing renewable energy with its eco ship concept design
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apanese-based Eco Marine power (EMp) has revealed its Aquarius Eco Ship concept design, which optimises the design of a large-going ship, such as a bulk carrier or oil tanker, to harness the power of the wind and sun by using the Aquarius MrE System. The Aquarius MrE System provides innovative fuel-saving and emission reduction technology that incorporates a variety of elements, including solar panels, energy storage modules, a computer control system and an advanced rigid sail design. The company says: “This low emission, green shippingfocused solution has been designed to be highly flexible and configurable so that it can installed on variety of ship sizes and types. Applications for the system include bulk carriers, oil tankers, survey ships, passenger ferries and even unmanned surface vessels.” it adds that, in addition to the Aquarius MrE System, a future Aquarius Eco Ship would be fitted with other fuel saving measures such
as an advanced electrical propulsion system, an optimised hull design and waste heat recovery technologies. Fuel cell technology could also be incorporated into the design. EMp claims: “This combination of technologies could lead to fuel savings of 40% or more and also dramatically reduce the emission of noxious gases such as sulphur oxides and nitrogen oxides. in addition, the use of renewable energy would reduce the vessel’s carbon footprint.” The company has also released details of its modified version of the Aquarius MrE System for use on naval and coastguard ships. The system will use EMp’s patent-pending EnergySail technology to form an array of devices able to harness renewable energy on these types of ships. greg Atkinson, Director of r&D at EMp, said: “We view this latest development of our marine renewable energy technologies as a major step forward in terms of bringing safe, practical and cost-effective wind and solar power systems to world shipping.”
Aquarius Eco Ship concept design harnessess the power of the wind and sun
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lEgAl NEWS
Going slow
Neil Henderson
Slow steaming has proved to be one way of conserving energy at a time of rising bunker prices, environmental pressures and downward pressure on rates. However, there are legal considerations that need to be taken into account
B
iMCO first started work on slow steaming clauses for time and voyage charterparties in 2010, publishing a clause for time charterparties in 2011 and one for voyage charterparties last year. A joint article recently published by solicitor Tom Burdass of law firm Campbell Johnson Clark and neil Henderson, barrister with Stone Chambers, says the recent judgment in the pearl C “reinforces the point that owners would be well advised to press for the inclusion of the BiMCO slow steaming clause in either its time or voyage charterparty form in all their future fixtures”. As BiMCO explained in its circulars on slow steaming “the legal aspects of slow steaming under a voyage charter party relate primarily to the owners’ obligations towards third parties, such as holders of bills of lading, while taking into account the safety of the vessel, crew and cargo. “As with the time charter party version, the Slow Steaming Clause for Voyage Charter parties is suitable for the liner, tanker and dry bulk trades. Although at present it is primarily the container sector that has implemented slow steaming regimes, it is believed that high fuel prices may result in an increasing number of bulk vessel operators contemplating speed reductions to save fuel.” The issue of slow steaming and the legal pitfalls that might arise reached the English Commercial Court last year with a decision of Mr Justice popplewell in Bulk Ship Union SA v Clipper Bulk Shipping Limited (The pearl C). Owners Bulk Ship Union had chartered the pearl C to Clipper Bulk Shipping on an amended nYpE form and the charterers withheld hire on the basis that the vessel had not proceeded with utmost despatch in accordance with clause 8 and also that the charterers could deduct time lost due to slow steaming under the first part of the offhire clause 15. in considering the case, the tribunal compared the vessel’s actual speed with the warranted speed and held that there had been a breach of clause 8 and a net loss of time under clause 15.
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The owners appealed the tribunal decision arguing that “in relation to clause 8, by using the performance warranty as the benchmark against which the requisite level of utmost dispatch and any loss of time was measured, the tribunal had erroneously converted the performance warranty from one which applied at the time the vessel was delivered into the charterparty, into a continuing performance warranty which applied throughout the course of the time charter,” Burdass and Henderson explain. The owners also argued that by measuring performance using the speed outlined in the performance warranty in relation to the off-hire clause, the tribunal had wrongly come to the conclusion that there had been an off hire event. They also claimed that the tribunal had failed to apply Article iV rule 2(a) of the Hague rules. Mr Justice popplewell ruled that the tribunal was not in error by using the warranted speed as the benchmark for assessing whether the vessel had proceeded with utmost despatch. He also rejected the owners’ reliance on Article iV rule 2(a) Commenting on the case, Henderson and Burdass say that The pearl C is a potentially important decision in that it identifies the performance warranty in the vessel’s description as the relevant yardstick against which the slow-steaming can be measured. “in the circumstances where: (i) the absence of a good explanation for poor performance may be sufficient to establish a claim for breach of clause 8 or a claim for off-hire; and (ii) the general prevalence of slow-steaming; the decision of The pearl C suggests that more claims may soon be on their way. Whereas before an owner who chose to steam more slowly for commercial or other reasons might think he was able to hide behind a performance warranty which applied only upon delivery, The pearl C suggests that in future this may not protect the slow-steaming owner.” Although slow steaming may not continue if there is a market upturn, the authors advise owners to protect themselves by using the BiMCO clauses which specifically address the issue of utmost despatch.
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EQuIPMENt & SERVICES
Cutting the costs A new economiser aims to offer fuel and emissions savings
E
quipment manufacturer Alfa Laval says its new Aalborg XS-TC7A waste heat recovery (WHr) economiser promises fuel and emissions savings for the world’s maritime fleet. The company says that when using the new system, firing the auxiliary boilers to sustain a ship’s steam requirements will cost much less, both in terms of fuel oil and impact on the environment. Capable of completely supplying or supporting ship steam requirements during manoeuvring and port stays, the system turns waste heat from a ship’s auxiliary engines into usable energy and also cuts carbon emissions.
Realising potential
Alfa Laval claims that, with its small footprint and low weight to output ratio, the Aalborg XS-TC7A promises to reduce fuel costs for oil-fired auxiliary boilers. After two years of testing at sea, a statement says, a major Danish shipping company is among the first to capitalise on the full potential of using waste heat recovery economizers both after the main engines and auxiliary engines on its fleet.
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According to Alfa Laval, the company, which it did not identify, signed a contract in January 2012 to install the Alfa Laval Aalborg XS-TC7A on 20 newbuildings and a larger number of retrofits over the coming years. Alfa Laval’s vice president, Marine & Diesel Division Hans-Henrik Jensen says: “Waste heat recovery systems after the main engines have proved to be lucrative for decades for many shipowners. “Taking advantage of the waste heat from a ship’s auxiliary engines is the natural next step, which is now possible thanks to the Aalborg XS-TC7A. Well received
The product has been very well received by the shipping industry, where many leading companies are investigating the possibility of installing the Aalborg XS-TC7A onboard.” Jensen goes on to say that Alfa Laval is the first maritime supplier to help shipowners improve fuel efficiency by capturing the waste heat potential of the auxiliary engines and turning it into usable energy onboard. This delivers measurable cost savings and also enhances a ship’s environmental profile.
World Bunkering Spring 2013
05/02/2013 10:37
PREVIEW: lNg – fuEllED SHIPPINg
Ready for LNG?
Two conferences, one in Europe and the other in north America, reflect the great interest building up in Lng as a fuel for commercial shipping
I
t seems that hardly a day goes past without a new development in the field of Lng. Two major events are being held in February, one in germany and the other in the US, which explore the possibilities of Lng as a marine fuel.
3rd Annual European lNg fuelled Shipping Summit
and Ankie Janssen, Senior Business Developer, gas & power, port of rotterdam, jointly deliver a presentation on “Assessing the pioneering work being done by ports to develop an Lng infrastructure”. in an innovative move, the Summit’s organiser has provided online resources to provide background information in advance of the actual event. (http://lng-fuelledshipping.com/resources). resources available include: Lng-fuelled shipping survey results; “Modelling the business case for dual fuel shipping”, Morgan Stanley Commodities; “Lng as ships fuel: the EMSA perspective”, pia Berglund, European Maritime Safety Agency; an interview with robert Derksen, Head of Maritime Services Swiss Climate; ngVA Europe: “The future of the Lng industry in the context of global energy markets”; and an interview with Jan Tellkamp, project Manager Lng Development, DnV.
The 3rd Annual European Lng Fuelled Shipping Summit is on 19 and 20 February at the Maritim Hotel reichshof, Hamburg. The Summit takes a bullish approach to Lng, with the organiser promising to: “Unlock the commercial potential of Lng-fuelled shipping and guarantee rOi within three years of investment. The event aims to show how to overcome “the infrastructure, technological and supply/demand challenges currently holding back your development of Lng fuelled shipping, you Q2. In your opinion, what is the biggest barrier to the development of LNG fuelled shipping? can deliver rOi faster”. The key sessions include a presentation on “Lessons learned from developing a container feedership fuelled by Lng” by Thomas MeierHedde, Managing Director, reederei Harmstorf and robert Derksen, Managing Director, Blue Oceans Services peter Mackeprang, Managing Director, Hansa Shipping, speaks on “Learning vital lessons from industry ‘first movers’: optimising your roll-out to Lng-fuelled shipping based on lessons learned from the very first projects”. Addressing the bunker suppliers, Lars persson, CEO, CrYO AB, presents on “replicating the successes and technologies used in developing the world’s first Lng bunkering boat” . There seems general agreement that the availability of a suitable infrastructure at ports will be an important factor in how fast Lng takes off as a marine fuel. Wolfgang Becker, Head of Environment Department, port of Hamburg, Further comments include:
World Bunkering Spring 2013
Retrofitting on existing ships Unclear long term costing/pricing
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Identifying the gaps and opportunities for standards (more importantly regulations) covering the full scope of vessels and fuelling is critical to move forward using LNG as a marine (and heavy trucks in ports) fuel.
05/02/2013 10:37
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Utilising marine LNG experiences and mapping future plans for LNG bunkering in North America
North America Wednesday 27 – Thursday 28 February 2013 PLUS LNG Bunkering Operations Workshop Friday 1 March 2013 The W Hotel, South Beach, Miami
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AVAILABILITY AND PRICING • Understand infrastructure requirements and developments • Hear the gas supplier’s plans for the future • Forecast future gas demand prices
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Interactive Workshop LNG Bunkering Operations Friday 1 March 2013
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Vice President, Fuels
United States Coast Guard
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Tony Teo
Martin Lepage
Director, Business Development
DNV
Gary Van Tassel
Manager, LNG Technical
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ARGENT MARINE
Dr. Richard Stewart
Bill Lind
GREAT LAKES MARITIME RESEARCH INSTITUTE
ABS AMERICAS
Bruce Trent
Ryan M. Bishop
ROLLS ROYCE
Marine Director of Technology & Business Development
Vice President, Area North Americas
GERMANISCHER LLOYD Bob Kamb
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Phil Nuss
Vice President, Engineering
TRINITY OFFSHORE
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Claus Emmer
Kyle Wingate
TAYLOR WHARTON LLC
President / Principal Human Factors Consultant
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SCANDPOWER, INC. (A LLOYD’S REGISTER COMPANY)
Michael Sultan
Bas Van Den Beemt
Jürgen Harperscheidt
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TNO
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LNG INTELLIGENCE
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TGE MARINE Official publication
Registration hotline: +44 (0)20 7017 5511 • Email: maritimecustserv@informa.com For latest programme or to register please visit: www.informamaritimeevents.com/lngna WB Spring 2013 book.indb 78
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05/02/2013 10:37
PREVIEW: lNg – fuEl fORuM
Fuelling the debate
The Lng Fuel Forum north America 2013 takes place in Miami from 27 to 28 February at The W Hotel, South Beach
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mong the highlights at this year’s Lng Fuel Forum north America are accounts of shipowners’ experiences of switching to Lng. norwegian offshore support specialist Eidesvikshare’s project Developer Kjell Sandaker will share the company’s 10 years of experience operating Lng-powered ships. in another presentation, Harvey gulf’s Senior Vice president Alaska/Deepwater Operations, Chad Verret, will report on his company’s moves towards Lng propulsion in north America Other key speakers include Tony Teo, Director, Business Development, north America Maritime DnV and pete Jacobs, general Manager, Ship power, north America Wartsila. Several case studies will highlight US shipowner and shipyard perspectives on Lng; practical port experience from rotterdam and the Bit Viking conversion A regulators panel Discussion will explore the theme “get to grips with Lng bunkering guidelines”. The panel will distinguish between regulations and recommendations and find answers to the questions: What is changing? What can we expect? What impact this will have on operations? The conference also incorporates Supply and infrastructure Updates. Experts will give their views on the future of natural gas in north America, as well as availability and pricing forecasts. There will also presentations on the infrastructure development
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needed for the use of Lng as marine fuel. A Design and Technology Briefing is intended to cover the latest developments and evaluate the various propulsions systems available. All in all, a packed programme is on, but the organiser stresses that will also be a buzzing networking and social side to the Lng Fuel Forum. After all, it is being held in Miami...
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PREVIEW: BuNkERINg IN EuROPE
Working to rule
How to comply with stricter environmental regulations is one of the central themes of the Bunkering in Europe conference
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he Bunkering in Europe conference organisers plan to offer a key platform for industry participants to discuss and debate how to respond to the strategic, technical, commercial and regulatory challenges and, at the same time, develop their businesses. This year’s conference has the theme “Towards 2015 and beyond – succeeding in a new regulatory and commercial marketplace”. The global maritime bunker industry is estimated to deliver between 300375 million tonnes and be worth around US$250 billion. While recent developments, both from a regulatory and commercial perspective, are posing a lot challenges, markets continue to operate. The conference seeks to shed light on where this market is heading. With the Amsterdam Marriott Hotel as its base, the whole programme runs from 4-7 March and includes a pre-conference masterclass on bunker quality management under new regulations and post-conference masterclass on managing bunker claims. The programme includes: global markets and European bunker consumption trends; shipowners’ roundtable – fuel options, efficiency and the road to ECA compliance; ECA compliant fuel availability and pricing dynamics; port state control forum; developments in conventional and Lng bunkers; sulphur enforcement updates from European authorities; p & i roundtable: quality claims management in ECA regions; fuel quality compliance – achieving better results through collaboration; and credit risk management – is best practice enough? Among a strong line up of expert presentations, roland van Assche, Director Oil Storage, refinery and Shipping at the port of rotterdam, will speak on his port’s position in the bunker markets. He is set to cover enforcement and compliance of sulphur limits in the port; positioning as a regional oil products and biofuels hub; improving and optimising the process of bunkering, leading the transition to sustainable fuels and an over view of trends and developments. Another topical presentation will be from Tessa Major, Technical Manager, port of Antwerp who will report on Antwerp’s initiatives on Lng-fuelled ships. Roland van Assche
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She will cover the safety requirements for Lng bunkering, the development of an Lng infrastructure at Antwerp, how to facilitate “early movers” and how ports are moving together towards an Lng future The Lng theme is also taken up by Ludovic Laffineur, Chairman – Lng Working group, European Community Shipowners’ Association (ECSA and Environmental policy Adviser, royal Belgium Shipowners’ Association. in his presentation, “Evaluating the potential of Lng as bunker fuel in Europe”, he will explain how regulatory organisations are planning for coping with both conventional bunker fuels and Lng bunkering. He looks at the economics of switching to Lng and highlights the opportunities and challenges. Meanwhile John Aitken, Secretary general, Shipping Emissions Abatement and Trading (SEAaT) will speak on the topic “Abatement technology options to reduce sulphur emissions”. Aitken will review progress to datereferring to recent applications and results. He will look at investment considerations for large and medium shipowners and then consider the feasibility of adopting abatement technology (scrubbers). The two-day conference concludes with a site visit to bunker tank storage facilities at the port of Amsterdam. for more information, visit: www.bunkeringineurope.com
Tessa Major
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PREVIEW: fuJCON
Full speed at Fujairah FUJCOn 2013 promises a packed programme when delegates gather for this biennial event at the world’s second largest bunker port in March
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key fixture in the bunker industry calendar, Fujairah Bunkering Week runs from 25-27 March and is expected to attract over 350 participants from 45 countries, converging from bunkering and allied industries. The organiser, Conference Connection, says attendees will have the opportunity to renew business contacts and forge new alliances over four industry events, 11 social functions, three site visits and 30 hours of networking time. The anchor event, Fujairah Bunkering & Fuel Oil Forum (FUJCOn 2013) will showcase Fujairah’s milestones as one of the world’s top three bunkering locations, examine bunker market developments, storage, trading, pricing, the changing refinery landscape, Lng, regulatory challenges, fuel quality, efficiency and technology. Keynote speakers include Fereidun Fesharaki, Chairman, FACTS global Energy, Ali Obaid Al-Yabouni, CEO, ADnATCO & ngSCO & Chairman, UAE Shipping Association and Apostolos rizakos, MD, Aegean Marine petroleum. iBiA’s Chief Executive, Cliff Brand, will deliver a speech on “regulating the bunker industry – the past, the present and the future”, while a panel of over 20 other distinguished speakers will provide updates and comments on new trends in bunker markets. Held under the auspices of the government of Fujairah with the patronage of His Highness Sheikh Hamad bin Mohammed Al Sharqi, Member of the UAE Supreme Council & ruler of Fujairah, FUJCOn 2013 will showcase Fujairah’s milestones as an internationally recognised anchorage, one of the world’s top three bunkering locations and its transformation into a global oil hub. Under the theme “global bunkering, storage and trading opportunities: balancing efficiency, the environment, commercial
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realities and technology”, the conference will also cover pressing global challenges faced by the industry and options to evaluate these challenges, encompassing fuel quality, efficiency, environmental requirements and technology. Three pre-conference workshops from 23-25 March will offer intensive coverage and in-depth analysis on bunkering operations, bunker disputes and bunker fuel blending, covering the impact of new maritime regulations while providing great learning opportunities, with plenty of case studies, special guest presentations and especially arranged site visits as part of the curriculum. Conference Connection says the Fujairah Bunkering Week promises to provide a realistic assessment of emerging trends, unrivalled networking opportunities and defining strategies leading to improved profitability. for more information, visit www.fujcon.com
Fujairah Bunkering Week promises a packed programme of events
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Organisers
Held in conjunction with
Supported by
Endorsed by
9-11 April 2013 Marina Bay Sands® Singapore
New for 2013! A Dedicated
Offshore Marine Day Wednesday 10 April 2013
Register now for Asia’s most important maritime conference Tuesday 9 April 2013
Wednesday 10 April 2013
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• The Asian Voice in World Shipping : Liner
• Ship Finance
• Technology@Shipyards
• Offshore Marine Roundtable
• Gas Transportation LNG & LPG
• Offshore*
• Green Technology
• The Asian Voice in World Shipping: Bulk (Liquid/Dry)*
• Project Cargo and Heavy Lift
*Matt Frei, Award-winning Journalist & Broadcaster (ITN London), is Session Anchor for Bulk (Liquid/Dry) and Offshore sessions
Register before 22 Feb 2013 to enjoy 10% discount!
Full details and registration at www.sea-asia.com Principal Sponsors
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DNV Petroleum Services
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PREVIEW: SEA ASIA
Reaching new heights The cornerstone event of Singapore’s Maritime Week, Sea Asia looks set to be bigger and better this year
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he iconic Marina Bay Sands, Singapore, will again host the Sea Asia maritime conference and exhibition, from 9-11 April. Sea Asia is the cornerstone event of Singapore’s Maritime Week, which features a whole range of maritime-related activities and events aimed at both the industry and the wider public. The joint organisers of the show, Singapore Maritime Foundation (SMF) and Seatrade, say they are projecting an overall growth of 15% in terms of both exhibition space and attendance at Sea Asia 2013. The last Sea Asia in 2011 covered 13,600 square metres (gross) and attracted more than 12,000 international executives over three days. Here to stay
The theme for Sea Asia 2013 is “The Asian Voice of Shipping – Here to Stay”, reflecting the development and ever-growing prominence of Asian countries in the maritime sector. All the key maritime industry segments will be covered. The first day will cater to shipowners in the conventional shipping markets and will focus on the outlook for the industry and how it is coping with market challenges. Offshore and maritime finance will be covered on the second day and the final day is left for specialist sectors such as the gas market and project cargoes, as well as the green agenda and technical and regulatory issues. giving a taste of the thought-provoking discussions that can be expected at the conference, DnB Bank regional director and head of Asia Erik Borgen said that while he hopes to see more positive developments in the shipping market in the next year, he believes there will be no upturn before the show comes around, providing a backdrop and ample opportunities for debate. Other potential hot topics in ship financing include the unknown factor of China in the market, with its ample finance and state
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capital. The pivotal role of the panama Canal in the transportation of Asian cargoes and its implications in the post-panamax era is another issue that is likely to pop up on the radar at the conference. “Sea Asia is a major platform for the projection of the Asian voice in shipping,” says Chris Hayman, chairman of Seatrade. “We are certain that Sea Asia 2013 will be another record-breaking event in term of deals done, increased exhibition space and attendance numbers.” The organisers says great progress has been made in attracting top industry leaders to take part in 2013. They include: Tan Chong Meng, group CEO, pSA international; Kenneth glenn, president, ApL; SS Teo, Managing Director, pacific international Lines; Andy Tung, Chief Executive Officer, Orient Overseas Container Line; Xu Lirong, general Manager, China Shipping (group); Douglas Hsu, Chairman, U-Ming Marine Transport Corp; Kyuho Whang, president & CEO, SK Shipping; per Wistoft, Chief Executive Officer, Brightoil Shipping Singapore. Support and sponsorship
Sea Asia’s organisers also say that they have attracted many of the world’s blue chip maritime companies to support and sponsor the event, including DnB Bank, Executive Ship Management, Lloyd’s register, gAC, rightship, ABS, Siemens, pSA, iHC Merwede, Keppel Offshore Marine and rolls royce Marine. “Sea Asia is the flagship maritime show of Singapore. This show seeks to be the focal point for international maritime leaders and the Singapore maritime community to discuss pertinent issues and explore business partnerships. We have been working hard to line up the best speakers for Sea Asia 2013 so that it will meet the needs of the industry players and project the voice of Asia effectively”, says Michael Chia, Chairman of the Singapore Maritime Foundation. for more information, visit: www.sea-asia.com
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PREVIEW: INtERNAtIONAl BuNkER CONfERENCE
© Clarion Hotel Post
Focus on compliance
This year’s iBC looks at the increasing amount of regulation now affecting the industry
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ith the over-arching theme “Compliance – smooth sailing or costly confusion?”, the 34th international Bunker Conference (iBC) will be taking place in gothenburg, Sweden from 24 to 26 April. The organiser, Bi norwegian Business School, says this year’s iBC will follow the pattern that has evolved since the first iBC in 1979. it says: “iBC is the world’s longest running and most respected bunker conference. As organisers Bi norwegian Business School is proud to confirm that iBC is supported by the industry and has remained a pro-active forum for more than a generation since its introduction in 1979.” it adds: “Using all the experience of the previous 33 conferences, with more than 6,400 people from 20 countries having previously participated, iBC 34 is the place to be, to meet and to network with all businesses and organisations working within the bunker sector and beyond.” Specific topics for discussion this year include: • Bunker purchase • risk management • Enforcement • Future solutions This year’s venue is the prestigious Clarion Hotel post, which opened just last year. As with last year’s successful event, professor James Corbett will chair iBC 34, while an impressive line-up of speakers is being arranged. for more information visit: http://tinyurl.com/IBC2013
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COMPANy NEWS
Igor Polchenko, president, Tranzit-DV
transit-DV improving the russian economy with innovative ways of working
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n 8 December 2012, Order no. 379 On Approval of Bylaws for posiet Seaport by the Ministry of Transportation of the russian Federation dated 19 October 2012 came into effect. The modifications provided for in this order were preceded by a number of steps carried out by Tranzit-DV, the first of which was the unveiling of a design for the organisation of petroleum products’ trans-shipment within Slavyanka port and also the expansion of the port boundaries, in a meeting of the Board of Federal Marine and river Transport Agency (rosmorrechflot) held in Vladivostok on 21 September. The design was jointly developed by Vostokbunker CJSC and the Far Eastern institute of Maritime Fleet and agreed with the master of posiet port, with less than a month to go until the Ministry of Transportation order. This is a remarkable achievement, improving the russian economy as a whole. On 31 October, the meeting of the interagency working group of the russian Ministry of Transportation and Federal Customs Service on the issues of co-operation in carrying out the state supervision of international sea and river transportation was held, where Sergey Boldyrev, president of Transit-DV, delivered an address: “The Declaration of Bunkers, Fuel and Lubricants as Ship’s Stores by Transit Vessels”. The ensuing discussions in the meeting became partially reflected in the issued order. Opening up an eighth anchoring position in posiet port and performing cargo handling activities on road transit vessels, without port entry, is a further significant achievement. Furthermore, ship documents will now be processed by the authorities around the clock. in this way, Transit-DV has created a new niche for the russian fuel business. While the Federal Customs Service of the russian Federation places all possible barriers in the way of entrepreneurs in order to raise fees, such entrepreneurs are, meanwhile, searching for ways to improve the economy of their regions and of the country as a whole. The method pursued by the Federal Customs Service is faulty and leads to the stagnation of the national economy. Entrepreneurs suffer huge losses in working capital from customs fees, while they could make much more revenue for the state treasury than the fees would ever bring in. Up to seven million tons of russian fuel are sold in the bunkering markets of Asia. That is, transactions on sales of bunkers are made outside the country, creating a direct outflow of capital abroad. Transit-DV has created a new context for conducting bunkering business. posiet port’s latest anchoring position is an indication of the company moving in the right direction. Similar anchoring positions in the roads of russian ports will enable them to stand in competition with foreign ports, bringing the bunkering business to a whole new level. By making anchoring positions to perform cargo handling activities in the roads, the company is implementing the Waterborne Bunkering project. However, Transit-DV has not restricted itself only to selling bunkering fuel. An agent’s department and ship chandler service
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have been established at Vostokbunker CJSC, in Slavyanka. The agent’s department will support the complete safety of foreign vessels in the waters of russian ports by assisting with all the issues related to ship entry, including escort with its own towing fleet. The ship chandler service will supply calling vessels with all the necessary stores, provision and water required. The company is also open to co-operation with agriculture firms by selling their produce to vessels. The results of all this will mean building up a completely new infrastructure for all market players to improve the economy of the region and thus of the nation, with the creation of a large number of jobs, a sizeable increase in the quantity of ship entries to Far Eastern ports and a rise in the tonnage of the national bunkering fleet. if russian bunkers are sold within russia, all the money involved in transactions will remain in russia and will be channelled to the same companies’ development – a larger revenue for the state treasury than the current customs fees. With Order no. 379 dated October 19, 2012 coming into force, steady steps are being made for the implementation of the project with the creation of a high-class bunkering hub in the primorye territory, drawing attention to the russian Far East. Vladivostok and primorsky region will be able to gain more impact and influence in the world business community, boosting the credibility of russian ports. russia has always been one of the top sea powers. now is the time to ensure it stays there.
Transit-DV conveys its appreciation to Viktor Alexandrovich Olersky, Deputy Minister of Transportation of the russian Federation, for the fundamental understanding of the mechanisms of an effective national economy; president of the Association of Shipping Companies Klyavin Alex Y for assistance and full support; the Ministry of Transportation of the russian Federation for expedient decision-making and order preparation; the Ministry of Justice of the russian Federation for timely registration of the order, and to the editorial staff of the rossiyskaya gazeta (the russian gazette) which published Order no. 379 dated 19 October on 27 november, 2012.
for more information, contact: 13 uborevicha Street, Vladivostok, 690091, Russia tel: +7 (423) 249-11-99 fax: +7 (423) 248-11-28 E-mail: tranzit@tranzitdv.ru Website: www.eng.tranzitdv.ru
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COMPANy NEWS
yugBunkerService With its own storage and loading terminals, and eight bunkering barges, YugBunkerService is one of the leading fuel providers in southern russia
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ugBunkerService is a group of companies providing bunker services at the ports of the Black and Azov sea, and the river ports of rostov-on-Don and Samara. The group supplies a full line of top-grade marine fuels (a wide range of iFO and MgO) and engine oils to sea-going and river vessels. YugBunkerService has been in bunkering for 16 years. Since launching our business in 1996, our priority has always been to meet and satisfy the requirements of our clients, providing superb service and high-quality fuel products at fair price. Years of hard work in the field have given us invaluable experience and the opportunity to establish a well-developed infrastructure for delivery, storage and bunkering of marine fuel. As a result, we have grown to become one of the leading fuel providers in southern russia. Having our own marine storage and loading terminals, plus a fleet of nine vessels with deadweight ranging from 200 to 5,700 MT, we are flexible and capable of coping with the demands of all our clients, from small independent carriers to large shipping lines. Being one of the biggest and most reputable bunker companies in the regional market, YugBunkerService has long-term and mutually beneficial relationships with large russian, Turkish, Ukrainian and greek shipping companies, as well as with a number of bunker traders operating at the Black and Azov sea. The main sea ports we operate in are Azov, Taganrog, Yeisk, Kavkaz, Temryuk and Taman. We also provide bunker services at the river ports of rostov-on- Don and Samara. YugBunkerService is a member of the russian Association of Marine and river Bunker Suppliers, and the international Bunker industry Association.
key information • Offices in rostov-on-Don, Taganrog, Yeisk and port Kavkaz • nine of own bunkering barges complying with loading and supply
regulations • Our own storage facilities, giving flexible bunker delivery options • Our own terminal at the port Temryuk, providing safe fuel load-
ing on tankers of up to 5000 DWTs • Fuel deliveries compliant with MArpOL and SOLAS regulations.
Our competitive advantages • Wide range of top-grade marine fuels from leading russian oil
refineries Well-developed and extensive supply network; Best prices for our clients Equal high-quality services at all our ports of delivery Widespread compliance of our barges and loading facilities with all legal and environmental requirements. Our team is pleased to offer you our experience and knowledge, best prices and an excellent service on a 24/7 basis.
• • • •
for more information, contact: Rostov-on-Don tel: +7 (863) 242-44-86 +7 (863) 242-44-87 +7 (863) 242-44-88 E-mail: rostov@ybunker.com yeisk tel: +7 (86132) 2-60-64 E-mail:yeisk@ybunker.com Port kavkaz tel: + 7 (86148) 4-43-47 E-mail: kavkaz@ybunker.com
www.ybunker.com
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COMPANy NEWS
Nakhodka-Portbunker Co ltd Specialising in the russian Far East ports
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akhodka-portbunker started as a bunkering company in 2003, specialising in bunker fuel supply to all types of vessels in the ports of the russian Far East. The company owns seven tankers with a total deadweight of approximately 11,000 mts. Two out of this seven were approved by Exxon Mobile and are now involved in bunkering for this major oil player in the port of nakhodka. in September 2011 the company purchased another tanker with the deadweight of 3000 mt, built according to Exxon Mobil’s requirements. All tankers with a deadweight from 170-3,000 tonnes are fitted with up-to-date bunkering equipment, certified meters and high-capacity pumps, which ensures effective bunkering operations and high, international standards of service. We provide physical bunker supply, bunker trade and ship agent services in the following ports: nakhodka, port Vostochnyi, Vladivostok and posyet. We will bunker your vessels with high-quality oil products complying to iSO8217:2010 standards from the best oil refineries in russia. The oil products are transshipped via one of the biggest rosneft oil depots, “nakhodkanefteproduct”. Our valued long term partnership with rosneft is an indication of the high quality of bunker services that we provide. Bunkering operations are performed by the crew, who are also part of our team. They are skilled in sampling, bunker gauging, measurements and the whole bunker delivery in accordance with iSO8217:2010, MArpOL 73/78 AnnEX Vi Marpol and all bunkering procedures. internationally approved independent surveyors are also involved for quantity survey, sampling registering, and specs analysing. All of the services listed above are part of our policy to provide customers with the best bunkering solutions and quality products. We aim to exceed our customers’ expectations and in doing so help their businesses to be successful. place a bunker order with nakhodka-portbunker at the ports of the russian Far East and you will receive effective, quality bunker supply, as well as information on the method, schedule and status of the order, as your vessel approaches the port. You will have all the necessary information so that your business can run smoothly.
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for further information contact: Bunkering Department: 15 Pavlov’s str. Nakhodka, 692926, Russia tel/fax: +7-(4236) 630641, 657806 E-mail: nakhodkaportbunker@nhk.infosys.ru Agency Department: tel: +7 (4236) 698880; 698881; 698882 fax: +7 (4236) 698880 E-mail: npb_agency@nhk.infosys.ru Website: www.nakhodkaportbunker.ru
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COMPANy NEWS
forum providing direct access to high-quality, low-sulphur fuel oil, 24/7
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orum supplies bunker fuels in the port of Saint petersburg. The company entered the market in 2011 and has proved to be a reliable supplier of bunker fuels, providing clients with low-sulphur fuel oil produced by Antipinsky refinery, an independent modern refinery with monthly production capacity of 100 000 metric tons. Our main product is straight-run, low-sulphur fuel oil complying with iSO-F-rME, iSO-F-rMg and regulations 14 (1) and 18 (1) of MArpOL 73/78, Annex Vi. We supply MgO (DMA) 0.1 sulphur from the leading refineries in russia, as well. Forum operates a time-chartered double-hulled barge with 1965mt deadweight to ensure fast and reliable deliveries. in addition, we have contracts with the region’s leading shipping companies, which makes our delivery process smooth and secure. product trans-shipment is carried out on the most up-to-date terminals in the region. Quality is the cornerstone of the bunker business, therefore, in collaboration with world-acknowledged surveying companies, we ensure the highest quality of the products we deliver. All our products are compliant with iSO 8217:2010(E) standard. Since its beginnings in 2011, Forum has earned the trust of customers and partners by supplying high-quality products at competitive prices and on flexible payment terms. The company ensures a consistent supply of low-sulphur fuel oil, working on a contract basis as well as the spot market. We provide our services for a vast number of major companies in the shipping industry, as well as traders 24 hours a day, seven days a week. Our competitive advantages are: • Direct access to high-quality, low-sulphur fuel oil • products conform to iSO8217:2010 (E), plus the later amendments • 24/7 services.
for more information, contact: Bunker trader Aleksey Miloradov Office 411, Barochnaya str. 10, b. 1, lit. A St Petersburg, 197110, Russia tel: +7 (812) 449-65-91 Mobile: +7 (921) 757-11-33 E-mail: trade@forumbunkering.ru Website: www.forumbunkering.ru
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gazpromneft Marine Bunker, ltd Market leadership is our goal
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azpromneft Marine Bunker, Ltd, a subsidiary of JSC gazprom neft, was founded in October 2007 for the year-round supply of petroleum products – fuel oil, marine fuel and lubricants – for sea and river transport. The company has five offices and two subsidiary companies: gazpromneft Terminal Spb provides the timely transfer of fuel and marine fuel all year round. gazpromneft Shipping manages a fleet of seven bunkering vessels Gazpromneft East, Gazpromneft West, Gazpromneft Nord, Gazpromneft Zuid, Gazpromneft Zuid-West, Gazpromneft Nord-West and Gazpromneft Zuid-Ist, which operate in the ports of St. petersburg, novorossisk, Kaliningrad, Murmansk and Ust-Luga. in 2011, gazpromneft Marine Bunker, Ltd bought two new tankers Gazpromneft Zuid-West (constructed in 2004) for operations in the Black Sea port of novorossisk, and Gazpromneft Nord-West (constructed in 2011), which operates in Ust-Luga. Both tankers meet all the international regulations. gazpromneft Marine Bunker, Ltd is represented in the main sea ports of service in russia, and is constantly expanding its geography. in August, gazpromneft Marine Bunker, Ltd carried out the first bunkering on Sakhalin island, at port Korsakov. • The main sea ports of operations: Arkhangelsk, port Caucasus, Kaliningrad, Kozmino, Murmansk, nakhodka, novorossiysk, primorsk, St. petersburg, Sakhalin island, Taman, Tuapse, Ust-Luga, Vladivostok, Vostochny. • The main river ports of operations: Astrakhan, nizhny novgorod, Olya, Samara, Sheksna, Volgograd. • The international ports of operations: Constanta, Klaipeda, riga, rostock, Tallinn. The main strategic goal of gazpromneft Marine Bunker, Ltd is to enter the international bunkering markets of Europe and Asia. The first step in this direction was made at the end of 2010, when the first international bunker service was provided in the port of istanbul. About 85% of the company’s services are provided to foreign shipowners. gazpromneft Marine Bunker, Ltd has contracts with major international shipping companies and traders operating in the ports of russia. Among russian clients are major sea and river shipping companies, as well as fishing companies. gazpromneft Marine Bunker, Ltd provides its clients with a wide range of high quality marine fuels, mainly produced at gazpromneft’s subsidiary, the Omsk Oil refinery. From April 2010 a low-sulphur (less than 1%) TAS-380 marine fuel has been produced, which has made gazpromneft Marine Bunker, Ltd a major bunkering company in the low-sulphur fuel oil market.
Since its foundation, the company has tripled its operations, delivering 900,000 tonnes of fuel in 2008 and more then 2 million tonnes in 2011. Today, gazpromneft Marine Bunker, Ltd is one of the leaders in the russian bunker market, with an 18.5% share.
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COMPANy NEWS
lukOIl BENEluX B.V.
Neftehim Bunker Jsc
One of the key players in ArA ports
The highest standards of service
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UKOiL Benelux B.V. is a prominent and reliable physical supplier of bunker fuels in the ArA region (Amsterdam-rotterdamAntwerp). We are supported by the logistic and financial strengths of our parent company LiTASCO SA in geneva, Switzerland. LUKOiL Benelux B.V. is part of russian oil major LUKOiL, which has wide-scale operations outside of russia. Our clientele varies from the well-known large/medium shipping lines to other physical suppliers and trading companies. Our company has a market share of 10-15% in our home markets rotterdam and Amsterdam. LUKOiL Benelux B.V. has also been supplying bunker fuels in Antwerp from within the port area and from other locations in ArA. We are also active in the Baltic, Black and Mediterranean Seas, as well as other regions. Since 2005, LUKOiL Benelux B.V. and our Dutch partner Burando Holding have been jointly operating Service Terminal rotterdam, which enables LiTASCO SA and LUKOiL Benelux B.V. to store fuel oils and blend them to necessary specifications. Construction of the second, much bigger phase of the terminal was completed in March 2012. Having our own terminal and purchasing almost all of our bunker fuels from our parent company LiTASCO SA gives us a competitive advantage in ArA’s saturated market and enables LUKOiL Benelux B.V. to design and implement flexible delivery strategies. We supply a wide range of products and grades-iFO 700, 500, 380, 180, 120 cst, bunker gasoil and can also provide other products upon request. We ensure quick and timely deliveries of our products to sea-going vessels with a fleet of five time-chartered barges with deadweight ranging from about 1,640 MT to 6,310 MT. provided by our partner Burando Holding’s barge operating company FTS Hofftrans, they are all new double-hulled barges with greater bunkering capabilities. We can also hire other barges for spot deliveries in the range of about 1,700 MT up to 9,200 MT, with both FTS Hofftrans and alternative reliable transport companies in ArA. Our team of bunker traders and operators has all it takes to be your reliable partner: experience, expertise and thorough knowledge of the bunker markets. They are friendly and available for your enquiries 24 hours a day. LUKOiL Benelux B.V. will gladly look into your enquiries in ArA and any other regions in the world. We look forward to your bunker enquiries and hope to do business with you soon.
eftehim Bunker Jsc is an affiliate of the well-known and reputable oil product trader and bunker supplier, neftehim Ltd, which has been operating since 2000. We maintain a reputation for reliably supplying the highest standards of services and excellent quality of products. Because of our outstanding business relations with the major russian oil companies, as well as the independent oil producers, we are able to be very flexible in the market, and always offer the best prices to our clients. Thanks to these extensive and stable relations, we always have the full range of residual products available. Furthermore, our marine gas oil is fully compliant with the latest international industry standards. Our company has access to the fleets of five different barging companies, giving us flexibility and efficiency in our bunker delivery operations. With growth in mind, we now have our own bunkerbarge, Severaynka, which was reconstructed on the Vyborg shipyard in accordance with the MArpOL regulation. its cargo tanks have a total capacity for 1,000 mt of HFO and 260 mt of MgO. Quality control is a matter of great importance to us, so before a bunker delivery to the vessel we regularly engage a surveyor to test our fuel. in choosing neftehim Bunker Jsc for your bunker supplies, you will always find outstanding levels of service, quality and efficiency.
Neftehim Bunker Jsc. Office 503 Bolshoy Avenue V.O. 80, lit. R St Petersburg 199106 Russia tel: +7(812) 332 2363/+7 (812) 942-3140 tel/fax: +7(812) 332 2364 E-mail: main@nh-bunkering.ru Website: www.nh-bunkering.ru
for more information, contact: Wilhelminakade 85, Building “De Maastoren”, 36th floor, 3072 AP Rotterdam, the Netherlands Postal address: PO Box 24065, 3007 DB Rotterdam, the Netherlands tel: +31 10 264 27 00 E-mail: bunkers@lukoil.nl
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COMPANy NEWS
Orion Bunkers
Aditya fuels l.l.C.
providing top-quality service at the most competitive prices in pakistan
A focus on quality and price
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ver the past eight years, our main business has been the supply of marine fuel to foreign ships/vessels berthed at Karachi port and Bin Qasim port. We have succeeded in providing top-quality services at the most competitive prices, at the agreed time and place. As the leading bunker supplier in pakistan, we continuously look for ways to be even more effective and competitive in the marketplace. The company’s bunkering products fulfill the iSO 8217 2005 specification in all grades. As one of the main bunker suppliers in pakistan, we have nine self-propelled oil barges that can carry all grades of fuels (iFO 180 cst, MDO and MgO). Also, we are the only bunker company in pakistan that owns offshore tanks for oil storage, which are able to store all grades of fuel, plus a full lorry fleet, which no other bunkering company in pakistan has. Our mission is to achieve excellence in providing bunker services, by complying with international standards and by ensuring we build long-term relationships based on trust and honesty with all our customers. We aim to help you achieve maximum profits while causing the least amount of environmental damage. Our team of bunker traders and operators are available 24 hours a day and are ready to put their skill, expertise and knowledge at your service and remain your long-term, reliable and trusted partner in bunker markets. Whenever you need to supply bunkers to your vessels sailing at pakistani ports, get in touch. With Orion Bunkers, you can be sure of the highest quality service as well as the highest quality bunker fuel in pakistan.
Orion Bunkers Office # 503, 5th floor, Horizon tower, Block 3, Clifton, karachi – Pakistan tel:+92 21 3529 2523-24 fax: +92 21 3529 2527 Mobile: +92 321 3760669 E-mail: orionkhi@cyber.net.pk Website: www.orionkhi.com.pk
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ased in Dubai, Aditya Fuels L.L.C., part of the Aditya Marine group, offers fuels supply services to all ships visiting Dubai. The company supplies bunkers in Ajman, Mina Saqr, Sharjah Hamriyah port, ras al-Khaimah port, Jaballi, Steven rock jetty, and Khorffakan. We have our own FO and MgO bunkering trucks, and the company storage tankers are already finished. We are aware of the importance of uplifting bunkers at the agreed time and place; after all, ships need to be sailing, not standing idle. We carefully monitor the supply and keep our customers informed of progress, 24/7. Our company policy is based on three major factors: quality, quantity and price; all our products meet with the iSO-8217:2005 standard and we pay great attention to safety and environment protection. Our current expectation is that demand will outstrip what we had initially anticipated; in order to facilitate this, the deployment of a barge will be necessary for supplies at outer anchorage, something which we hope to address in the near future. The company aims to maintain its high profile, and continue to enhance its international image as a professional supplier of quality bunker fuel. We value our clients and take good care of their bunkering needs. Furthermore, we always welcome new clients and are permanently ready to offer our services.
Mr N.V. Rambabu Managing Director Bunker Supplier flat: No.115, Alzaruni Complex Dubai Islamic Bank Building, u.A.E Mobile: +971555042872 E-mail: aditya@adioil.com E-mail: uae@adioil.com East Cost India 41-1-35, Rangayyanaidu street kakinada-533007, India Mobile: 91 9848257582 tel: +91 884 2366717/718 E-mail: aditya@adioil.com Website: www.adioil.com Mrs Sasi Adapa Mobile:+44 7825152973 E-mail: adioiluk@gmail.com
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COMPANy NEWS
Scadar ltd
galp Energia group
Always assisting our clients
portugal’s fuel stop
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cadar Ltd is the oldest physical supplier at the port of Murmansk, established since 1998. For almost 15 years our business portfolio has covered activities in the shipping industries and offshore bunker supplies to drilling platforms and special vessels working in the north of russia. Our experienced team is happy to provide our customers with competitive pricing, trade credit availability, logistical support, and fuel quality control. We are fully certified for international standard iSO-9001 to ensure safety in all bunkering procedures. Our company is environmentally friendly and all our tankers are fitted with an advanced clean-up system. Scadar Ltd has enjoyed long-terms relations with most of russia’s oil major companies such as Lukoil, rosneft and gazpromneft, from whom we receive stable supplies throughout the year. With development of Arctic, our shipping activities have rapidly grown in the port of Murmansk; in order to meet new requirements we have future plans to expand our tanker fleet. Our aim is to benefit our clients and help them to achieve more nautical miles per spent dollar.
Scadar ltd tel: +7 8152 596 170 fax: +7 8152 596179 E-mail: scadar@scadar.com Website: www.scadar.com Vladislav Boyarskiy Managing Director tel: +7 8152 596 173 E-mail: vb@scadar.com Boris Makarov Manager trading Department tel: +7 8152 596 171 E-mail: bm@scadar.com Ivan lutkevitch Senior trader tel: +7 8152 596 171 E-mail: iil@scadar.com Olga Sudova logistic Department tel: +7 8152 596171 E-mail: os@scadar.com
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ased at Lisbon, galp Energia group, is able to offer fuel supply services to all ships visiting this warm and pleasant country. galp Energia has professional bunkers team provide its customers with high-quality fuels and services, and the highest safety standards in all its bunker activity and the company’s bunkering products fulfil the iSO 8217: 2010 specification in all grades. To help achieve customers’ targets on the environment, the company can supply low-sulphur fuels at several ports, with the port of Lisbon being the main port for low-sulphur fuel. Optimising its logistics resources and storage capabilities galp Energia is able to provide high-quality services and products, including a wide variety of marine distillates. galp Energia is the main bunker supplier in portugal, and provides bunker services using its two barges with capacities of 5,800 tonnes and 3,000 tonnes each. A 5,800 dwt double-hull barge, Bahia Tres, began operations in 2010 to support the company’s business in the ports of Sines and Setúbal, meeting all the important aspects for safety and protecting the environment. it is equipped with anti-pollution measurers and is covered by European Maritime Safety Agency regulations in the Atlantic Ocean and Mediterranean Sea. Always aware that its customers’ main concern is product cost, the company offers competitive prices without compromising product or service quality. Visiting portugal and being supplied by galp Energia will always be a good decision for regular customers, used to working with a professional team. We are the only refinery in portugal and operate refineries at Sines and Matosinhos. We have an extensive product range that includes gasoline, diesel fuel, jet fuel, fuel oil, Lpg, bitumen and several aromatic products. Our refining business is responsible for the supply of oil products to our retail, wholesale and Lpg marketing divisions, competitors and foreign customers, as well as for the operation of our refining and logistics assets. We hold a significant position in the portuguese crude oil products storage market. Our two refineries in portugal together represent 20% of the iberian refining capacity, and collectively account for the majority of portugal’s annual domestic petroleum product requirements. We are investing approximately €1.4 billion to upgrade and improve the efficiency of our refineries, representing €1 billion for Sines and €0.4 billion for Matosinhos.
for further information contact: galp Energia SA tel: +3512 1724 0637/654 fax: +3512 1724 2957 E-mail: bunkers@galpenergia.com www.galpenergia.com
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COMPANy NEWS
Baltic Bunkering Company
AMkOil group
Leading player in St petersburg
Trading and transportation of oil products
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he Baltic Bunkering Company was founded in August 1995. During these 17 years of trading the company has succeeded in creating a reliable and high-quality bunkering service and is now one of the leading players in the St petersburg bunker market. Backed by a strategic alliance with petersburg oil terminal (pOT) (www.oilterminal.ru), the biggest oil storage facility in north-west russia, as well as with the oil trading company pnT-gSM, Baltic Bunkering Company always has a good availability of the full range of high-quality fuel products. We supply high-quality bunker fuels, including low sulphur products. All fuels are transshipped through pOT and are closely monitored and controlled in the pOT laboratory to ensure that they meet iSO8217:2010 (E). The process of quality control starts before we purchase the fuel. We only buy fuels from refineries that have consistently provided a quality product over a long period. We have also introduced additional quality controls at the barge loading operations. The Baltic Bunkering Company owns 2 bunker barges - Alana (3,500 mt) and pegas (1,000 mt). Quality is the cornerstone of our business and is guaranteed by the daily work of our skilled specialists. Baltic Bunkering Company is approved for iSO 9001 Quality System Certificate by Det norske Veritas and is a member of international Bunker industry Association (iBiA). We also pay special attention to the ecological aspects of our bunkering activities. in our practice, we strictly follow and observe the existing standards and rules prescribed for petroleum transshipping operations and the prevention of leakage of oil products. Among our competitive advantages are: • Full range of fuel oil products available, from iFO-30 to iFO-600; • LSFO is always available; • All products conform with iSO 8217:2010 (E) plus the later amendments; • Our own bunker fleet; • prompt delivery of all bunker services; • Fuel deliveries conform with regulations 14 (1) or (4) and 18 (1) of MArpOL 73/78, Annex Vi, and Annex 1 and Annex 2 of SOLAS regulation Vi/5-1 (MSDS).
for more information, please contact us at: 48, Stachek Prospect, 198097 St Petersburg Russia tel: +7 812 320 82 00 fax: +7 812 325 45 33 E-mail: bbc@bunkering.spb.ru Website: www.bunkering.spb.ru Sales department: tanya Sorokina, mobile: +7 921 905 70 63 E-mail: tanya@bunkering.spb.ru Dmitry Elster, mobile: +7 921 965 87 83 E-mail: ed@bunkering.spb.ru
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ne of the biggest companies on Kolskiy peninsula, AMK group was founded in May 2004. its main activities are trading and transportation of oil products such as: • Diesel • Fuel oil iFO-380 • petrol (all types) • Fuel oil iFO-180 • Fuel oil M-100 • Fuel oil iFO-30 AMK group consists of several companies involved in different types of activities: bunkering; road transportation of fuel; utilisation of mixed oil products waste and bilge water. The company has loading facilities for anchored vessels or those on scientific explorations. One of the main areas of activity is bunkering of foreign and russian vessels in Murmansk and other ports in the region and coastal shipping areas. The company’s fleet comprises tankers Lahta, Sever, Sosnovets, Dnepr and Don, capable of shipment of all types of oil products and bilge water, with capacity of up to 300 tons, as well as transportation of up to 3300 tons of dark oil products and diesel. The tankers can travel up to 20 miles offshore to bunker the vessels or travel to other ports. All tankers are staffed by highly trained specialists. The company’s transport facility comprises four petrol tank lorries with capacity ranging from 8m3 to 23m3 and four masut tank lorries with capacity ranging from 15m3 to 23m3. These vehicles transport all types of petrol, diesel and masut in Murmansk, Murmansk region and the republic of Karelia. The company has maintenance and repair facilities at the Murmansk Sea Fishing port, which it uses to service its specialised equipment and provide repair services for other companies. in 2011, AMK added three more vessels to its fleet. Angrapa, Mirgorod and Ostrov Anzer are the newly purchased vessels, currently involved in the scientific exploration of pechorsk Basin and Barents Sea aquatory. The fleet provides all-year-round monitoring of the local environment. in 2012, AMK started a new project “Offshore transshipment complex-2”. The facility was built in Kolsk Bay near Mishukovo and is designed for the trans-shipment of oil from vessel to vessel. Offshore trans-shipment of oil is very common worldwide due to its safety, environmental protection and high throughput capacity. it is also easy to manage and cost-effective. The complex works all year round, 24 hours a day. AMK group’s operations are supported by a professional team of lawyers. The company welcomes co-operation in the transportation and trade of oil products with mutually beneficial partnerships. for more information, contact: Alexander koltunov, Director Roman Moliboga, Commercial Director Maksim Vorobyov, technical Director Anton Smolin, Head of Bunkering 86 Podgornaya Street, Office 413 Murmansk, Russia 183038 tel/fax: 007 (8152) 287828/287337/ 286028 E-mail: amkoil@mail.ru
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WORlD BuNkERINg SuMMER 2013 ISSuE SPECIAL FEATURES: Oil majors Our annual review of the bunkering activities of the big oil companies. How are they responding to the new and pending requirements for fuel with increasingly low sulphur content?
Fuel management Very high bunker prices at a time of poor freight markets highlight the need for as economical use of fuel as possible. We look at what is on offer.
Surveyors What will be the role, if any, of the bunker surveyor as the use of mass flow meters becomes industry standard practice?
LNG The possibility of LNG providing a environmentally friendly and economical alternative to heavy fuel oil has attracted a lot of attention within the shipping industry. But how soon will it be feasible to trade LNG-powered ships worldwide?
Geographical focus: Mediterranean From Gibraltar to Piraeus, the Mediterranean is an increasingly complex market, with vessels passing through requiring both standard and low sulphur fuels.
Turkey We report on the latest developments in this vibrant bunker supplying country, which serves both Mediterranean and Black Sea markets.
Australia A round-up of the latest developments.
Pictorial review IBIA Annual Dinner – London.
Event review FUJCON – Fujairah. International Bunker Conference – Gothenburg.
Event preview Istanbul Bunker Conference – Istanbul.
Russian update News, Views, Analysis.
Regular features Interview, Industry news, Environment, Testing, Risk management, Innovation, Legal news, Equipment and services, Diary
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DIARy
Looking ahead 19-20 february
26-27 March
3rd Annual European LNG Fuelled Shipping Summit
FUJCON 2013
Hamburg germnay Web: lng-fuelledshipping.com
Fujairah UAE Web: www.cconnection.org/conference/ FUJCON/2013/Fujcon2013Home.html
27-28 february
9-11 April
LNG Fuel Forum North America 2013
Singapore Web: www.sea-asia.com
Miami USA Web: www.informamaritimeevents.com/event/ LNGNA
4-7 March 2013
Sea Asia
24-26 April 34th International Bunker Conference
Bunkering In Europe
Amsterdam Marriott Hotel, The netherlands Web: www.bunkeringineurope.com
gothenburg Sweden Web: www.bi.edu/about-bi/calendar/the-34thinternational-bunker-conference/
7-8 March
5-7 June
Marine Propulsion Conference
London UK Web: www.rivieramm.com/events/annual-marinepropulsion-conference-2013-43/event-home-602
6th International Istanbul Bunker Conference istanbul Turkey Web: www.istanbulbunkerconference.com
18-20 March
4-7 June
CMA 2013
Nor-Shipping
Stamford Connecticut US Web: www.shipping2013.com
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Oslo norway Web: http://messe.no/en/nor-shipping/
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• • • •
High quality ISO 8217-2010 bunker fuel Quality control from oil refinery plant to end user Flexible prices Main Sea Ports of operations: Saint-Petersburg, Kaliningrad, Murmansk, Archangelsk, Novorossisk, Tuapse, Port Kavkaz, Nakhodka, Vladivostok, Vostochnyi and Sakhalin island • Main River Ports of operations: Saint-Petersburg, Yaroslavl, Kazan, Volgograd, Rostov-on-Don, Astrakhan, Azov, Ust-Kut, Nizhniy Novgorod • International ports: Tallin, Riga, Klaipeda, Rostok, Konstanca
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The fuTure is in our hands!
GAZPROMNEFT MARINE BUNKER E-mail: bunkers@spb.gazprom-neft.ru E-mail: marinebunker@gazprom-neft.ru
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A secure measurement system has arrived Independently approved by the Maritime and Port Authority of Singapore, the Mass Flow Metering System is designed for real-time measurement, integrity and accuracy – ensuring peace of mind for each and every delivery.
SCAN CODE TO
exxonmobilmarinefuels.com/massflowmeteringsystem
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LEARN MORE
05/02/2013 09/01/2013 10:38 10:19